825.85/204: Telegram

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

1302. Re sale of CSAV vessels to WSA. Chilean Senate yesterday considered approval of proposed sale in secret sessions lasting all day. [Page 883] Upon adjourning it decided to resume consideration on Monday July 26 and Tuesday July 27.

What appears to be worrying the Senate is possibility that CSAV will use proceeds of sale for other purposes and at end of war no funds will be available to purchase replacement vessels. Senate is considering making its approval conditional upon payment for vessels in gold bars to be brought to Chile for safekeeping. I know Foreign Minister is amazed and distressed by Senate’s delay. Vial confident of Senate approval Tuesday.