811.20 Defense (M) Chile/621: Telegram

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

78. For Hull, Under Secretary and Duggan. The immediate cancellation of the copper control agreement presents one problem that is visually [vitally?] important to Chile and may easily involve her alone among the American nations in a very dangerous controversy with Argentina. Chile has been able to withstand demands for copper from Argentina on the ground that her agreement with the United States prevents it. Once openly declared that we have no say in the matter and that it is entirely up to Chile a refusal of Chile to sell to Argentina will amount to an open and probably very dangerous controversy between the two countries. Since Chile is the main object of the Nazi Argentine conspiracy do we want to confront Chile among all the American nations with this dilemma? Cannot some formula be found through which Chile cannot because of her agreement with United States sell to Argentina? Please bear in mind that the pressure on Chile from Argentina would be tremendous, with money mad Chilean individuals of consequence eager to make millions by dealing with Argentina, and with threats of bringing disputed boundary matters et cetera to the fore. We are all agreed here that this would be asking more of Chile than of any other American nation though she has a common boundary and many problems. If Chile is attacked from Argentina as a result are we prepared to support her? Have not yet discussed this matter with Fernández and would like your very early reply.

Bowers