740.00112A European War 1939/25869

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

No. 5688

Sir: I have the honor to refer to my Strictly Confidential despatch 5618 of February 3, 1943 in regard to economic and financial controls for Chile.

A few days ago, a member of my staff suggested to Mr. A. J. Pack, Commercial Counsellor of the British Embassy that he call on appropriate Chilean officials for the purpose of furthering our joint efforts to induce the Chilean Government to institute controls. Accordingly, on February 5, 1943, Mr. Pack accompanied by Mr. John Royden, also of the British Embassy, called on General Arriagada, Minister of Commerce and Economy, and his legal adviser, Arturo Torres. A memorandum of this conversation is herewith enclosed.7

While General Arriagada stated that no further remittances would be made through the German-Chilean compensation account in the Banco Central, which he considers as having automatically lapsed with severance of diplomatic relations, he had nothing definite or encouraging to say in regard to affirmative financial and economic controls. It is to be noted also that Sr. Torres said that no decision had been reached by the secret committee, and moreover, that the feeling of the Government was against taking any measures so long as Axis elements kept quiet.

The British Embassy here has been cooperative in every respect, and has assisted in every way possible to bring about local controls. At the same time my staff has kept the British Embassy informed of all developments and has consulted with the British on all steps which have been taken.

Respectfully yours,

Claude G. Bowers
  1. Not printed.