810.74/897d: Airgram

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

A–442. Your A–441, December 8.39 Department has given careful consideration to your suggestion that we give some of our business to Transradio Chilena. However, Department has noted statement in your despatch No. 5107 of December 3, 194240 concerning the furnishing of copies of telegrams received by Transradio to the German Embassy and the statement in your telegram No. 10 of January 2, 7 p.m. concerning the large ownership of Transradio stock by enemy nationals and the large possibility of leaks. In the circumstances the Department would be loath to take any chances that our nonconfidential code messages would be made available to Axis representatives in Santiago and believes, therefore, that telegraphic communications between the Department and your Embassy should continue to be sent by cable, at least until we are absolutely certain of the discretion of the personnel of Transradio. Mills and Gray of your staff have been consulted and they feel that your airgram under acknowledgement correctly depicts the present situation of Transradio. Department will be pleased to receive your further comments in the light of the considerations advanced above.

The Department is concerned by the indication in your telegram No. 10 of January 2, 7 p.m. that there still are working for Transradio Chilena persons of questionable loyalty. The Department had assumed from General Davis’41 report that Transradio Chilena had been cleaned up so that it was as reliable and responsible as any other company in which the interests of the United Nations were dominant. The Department desires that you inform the directors representing RCA42 of the desire of this Government that whatever further steps are necessary to make this a “safe” operating company be taken at once. The Department will also take the matter up with the RCA here as well as with the British Embassy which will be requested to have similar instructions issued to the British directors in Santiago.

Hull
  1. Not printed; it stated that Transradio Chilena was losing money through its efforts to cut off Axis communications (810.74/654).
  2. Not printed; it reported that the Germans had arranged a scheme in which refugees could deposit sums in neutral countries via telecommunication to ransom a relative (862.5151/2402).
  3. Gen. Robert C. Davis, chairman of the Transradio Consortium Trust.
  4. Radio Corporation of America.