825.85/223

The American Ambassador in Chile (Bowers) to the Chilean Minister for Foreign Affairs (Fernández)80

No. 2178

Excellency: I have the honor to advise Your Excellency that I have received from Admiral E. S. Land, Administrator, War Shipping Administration of the United States, a Power of Attorney authorizing me to represent him in negotiations with Your Excellency’s Government and with the Compafñia Sud Americana de Vapores with respect to the purchase by the War Shipping Administration of the Motor Vessels Copiapo, Aconcagua, and Imperial.

[Page 880]

The agreement between Your Excellency’s Government and the Government of the United States shall be as follows:82

1. The Government of the Republic of Chile approves the sales by the Compañia Sud Americana de Vapores, a corporation domiciled in Valparaiso, Chile, of the motor vessels Copiapo, Aconcagua, and Imperial, to the Government of the United States, acting through and by the Administrator, War Shipping Administration, on terms and conditions set forth in the annexed Agreement for Sale designated Annex I.83

2. It being the desire and intention of the Government of the United States to provide substitute freighter tonnage of a speed of about ten knots as replacements for the three motor vessels above named, the Government of the United States, acting through and by the Administrator, War Shipping Administration, and in accordance with the Act of Congress approved on March 11, 1941, entitled “An Act to Promote the Defense of the United States”, will bareboat charter to the Government of the Republic of Chile four merchant vessels, to wit: the SS West Gotomsha, the SS Patricia Shahel, the SS Ann Shahel, and the SS Capulin, or other satisfactory merchant vessels of similar type, size, and description (hereinafter referred to as “satisfactory substitute”), on terms and conditions and for the period set forth in the annexed form of bareboat charter designated Annex II.83 Unless prevented by circumstances beyond the control of the (United States Government and the)* War Shipping Administration, delivery of the said merchant vessels shall be as provided in the following paragraph.

Promptly after consummation of the sale of the first motor vessel, or prior thereto, the SS West Gotomska or satisfactory substitute shall be delivered. Promptly after consummation of the sale of the second motor vessel, or prior thereto, the SS Patricia Shakel and the SS Arm Shahel or satisfactory substitutes shall be delivered. Promptly after consummation of the sale of the third motor vessel, or prior thereto, the SS Capulin or satisfactory substitute shall be delivered. If for any reason whatsoever, the sale of only one vessel be consummated, then only the SS West Gotomska or the merchant vessel delivered as satisfactory substitute for the SS West Gotomska shall remain under bareboat charter, any other merchant vessels previously delivered to be redelivered to the War Shipping Administration at New Orleans after completion of their first round voyages. If for any [Page 881] reason whatsoever, the sale of only two motor vessels be consummated, then only the SS West Gotomska or the merchant vessel delivered as satisfactory substitute for the SS West Gotomska shall remain under bareboat charter, any other merchant vessels previously delivered to be redelivered to the War Shipping Administration at New Orleans after completion of their first round voyages, but against the last of such redeliveries, a second merchant vessel of the West Coast type or satisfactory substitute shall be delivered under bareboat charter on terms and conditions and for the period set forth in the annexed form of bareboat charter designated Annex II.

3. The Government of the United States agrees that for a period of two years following the termination of the present war, as proclaimed by the President of the United States, the Republic of Chile, or if designated by the Republic of Chile, the Compañia Sud Americana de Vapores, shall be given the privilege, to the extent permitted by the laws of the United States, of acquiring at its own expense in the United States vessels of an aggregate gross tonnage equal to the aggregate gross tonnage of the Copiapo, Aconcagua, and Imperial, and of such class as may be acquired in the United States by any other Government or steamship line. The Government of the United States may accord this privilege by authorizing any or all of the following: (a) contracts with a shipyard or shipyards in the United States for the construction of vessels(b) purchase in the United States of privately owned vessels; or (c) purchase in the United States of vessels owned by the United States. Nothing in this Article shall be construed as a commitment by the Government of the United States to give financial assistance in connection with such acquisition.

Accept [etc.]

Claude G. Bowers
  1. Copy transmitted to the Department by the Ambassador in his despatch No.7165, August 2; received August 11.
  2. This agreement with a slight modification was accepted by the Chilean Government on July 31, 1943.
  3. Not printed.
  4. Not printed.
  5. Phrase in parentheses not in original note but added later, see Enclosure No. 2. [Footnote in the original; enclosure not printed.]