825.85/179: Telegram

The Secretary of State to the Ambassador in Chile (Bowers)

574. Your 966, May 29, 2 p.m. As you know, an offer was submitted by us for the purchase of the vessels for $2,000,000 each, plus four vessels to be chartered to the Chilean Line. The deal is, however, contingent upon the conclusion of an agreement between Chile and United States with reference to post-war replacement. Since the offer was submitted, the contract and charter party terms have been discussed between WSA and Subercaseaux. These documents, when in final form, will be sent to Chile or will be taken there by Subercaseaux. The Department will forward copies to you. It is expected that if the deal is approved in Chile by the Chilean Line and Government the documents will be signed there.

Pending arrival of these documents in Chile it is requested that further discussions on your initiative with Chilean authorities be avoided as it is up to them to accept or reject the proposal.

The Dept has given thought to the wording of a suitable press release, to be issued only when the deal is concluded. You will be kept informed.