835.24/9–2144: Airgram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received September 28—5 p.m.]
A–677. The position of the United States Government respecting re-exports of American merchandise from other American Republics to Argentina as reflected in the Department’s recent confidential telegram87 has been brought to the attention of the Chilean Country [Page 355] Agency (National Foreign Trade Council). The Embassy feels that no useful purpose would be served by any more formal approach to the Chilean Government in regard to this matter inasmuch as upon representations initiated by the Embassy well over a year ago and repeated on various occasions subsequently, the Chilean Government, through the National Foreign Trade Council, has evidenced every desire to prevent re-exports of American merchandise from Chile to Argentina. During this same period of time there has been a firm understanding between the National Foreign Trade Council and the Embassy under which all proposals involving exports of American merchandise to Argentina and exports of materials which would create a greater demand upon the United States in respect to materials in critically short supply are presented to the Embassy by the Council before final action is taken by the latter agency. Without exception to date the Embassy’s recommendations have been followed by the Council.
While it is known that there is a certain illicit traffic in merchandise of this character between Chile and Argentina, the Embassy has been kept currently informed respecting measures adopted by the Chilean Government with a view to preventing such traffic and it is believed that these measures have been successful to the point of reducing such smuggling activities to an absolute minimum. For example, see Embassy’s despatch no. 9865 of May 30, 1944, file no. 866.12 and despatch no. 7674 of September 28, 1944 [1943].88
The aforementioned evidences of cooperation on the part of the Chilean Government in preventing re-exports of American merchandise to Argentina and the measures which have been adopted to prevent illicit traffic in this merchandise have been undertaken gratuitously by the Chilean Government in its own interests but it is believed that the definitive statement of policy outlined in the Department’s telegram under reference will serve to strengthen the desire of the Chilean Government to apply with even greater vigor the measures and procedures which were adopted upon its own initiative over a year ago.