Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

825.24/1734

The Acting Chief, Division of West Coast Affairs (Lyon), to the Counselor of Embassy in Chile (Heath)

Washington, March 3, 1944.

Dear Don: I note that in a recent despatch (no. 8815 of February 5, 1944)²⁶ comment was requested on our policy with reference to Lend-Lease supplies to Chile. At the present time the entire Lend-Lease program for the other American Republics is under review²⁷ in an effort to work out a comprehensive and uniform policy both for the immediate future and the post-war period, and an instruction dealing with this matter will, I suppose, eventually be sent to the field.

In the meantime, the following information may prove useful to you as background in case Chilean officials again broach the subject of Lend-Lease supplies for Chile.

The basic factor governing the furnishing of Lend-Lease matériel is, of course, what Chile needs in the light of hemispheric defense.

The President, having found the defense of this hemisphere vital to our national defense, a Lend-Lease agreement was concluded with Chile on March 2, 1943²⁸ and on the basis of this agreement and of Chilean needs as determined by staff conversations and the best available estimates of enemy capabilities, a credit was set up for the acquirement by Chile of necessary military and naval matériel from the United States.

In practice, a number of factors have determined the supply of Lend-Lease matériel. Among these may be mentioned the availability of matériel, Chilean capacity to make use of the matériel supplied and the estimated extent of the enemy menace. In this connection, there should also be borne in mind the special situation which obtained at the time Chile was reluctant to sever relations with the Axis.

The policy governing the supply of Lend-Lease matériel to Chile is the same as that applied to the other American Republics which have severed relations with the Axis and with which Lend-Lease agreements have been concluded. In the case of those countries which have declared war on the Axis and which are actively engaged in or soon to be engaged in hostilities, such as Brazil and Mexico, the policy is to furnish quantities and types of matériel appropriate to those activities.

The quantity of matériel already supplied to Chile compares very favorably with the amounts supplied to other American republics which have broken relations but not declared war.

With best regards,

Cecil

26. Not printed.
27. See pp. 87 ff.
28. Not printed; for a brief summary of the agreement, see bracketed note, Foreign Relations, 1943, vol. v, pp. 816–817.