840.51 Frozen Credits/9344b: Telegram

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

122. Department understands that very substantial Axis funds have escaped from Chile not only in anticipation of the severance of relations but also subsequent to the break. We assume this is due to the Chilean Government’s delay in putting into effect adequate freezing controls.

Unless you perceive good reason to the contrary, please indicate to the Chilean Government at once 1) the concern with which this Government regards the failure of the Chilean Government to guard promptly against the flight of Axis funds, and 2) the importance of immediate steps to correct this regrettable situation.