825.85/172: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received 11:48 p.m.]
841. Department’s 469, May 3, 7 p.m. and my 829, May 5, 7 p.m. Letter from Vial read in secret session Chilean Chamber Deputies May 24 [4] was published this morning’s papers. English translation by airmail.
Vial’s letter stresses concern CSAV for national interests Chile and advantage to country from small [sic] sale of the vessels. One condition he claims is promise by Department State to allow Chile to acquire new motor vessels after war, to give Chile most-favored-nation treatment in acquisition after war of new vessels for coastal trade, and to assure CSAV preferential position in west coast South America trade. This was news to me since from Department’s telegrams I gathered that no postwar commitments had been made.
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This is most distasteful and can only react to our disadvantage in long run. Since Vial’s letter has been published, I suggest that WSA make fair offer on take it or leave it basis and announce publicly what it has done. This might prevent clique in question from exploiting situation further to their personal advantage. Since transfer might be rejected, the possibility of following this course depends on whether failure to acquire vessels would affect our war effort vitally.