811.6352/7–844: Telegram
The Secretary of State to the Ambassador in Chile ( Bowers )
Washington
, July 8,
1944—6 p.m.
790. Please present to Ministers of Foreign Affairs and Finance the Department’s views regarding the demands of the Chilean Government against the copper companies:
- (1)
- Subject should be introduced by mentioning that in conversation of June 9 between Assistant Secretary Acheson and Ambassador Michels (memorandum of which was sent to you47), Michels stated that he would present the Department’s views to his government and request a further interview upon receipt of reply. No further word has been received by the Department from the Chilean Embassy.
- (2)
- The Department understands Minister of Finance is pressing copper companies for decision this week. Department is at a loss to understand this action in view of the fact that the Chilean Government has made no further approach to Department as mentioned above.
- (3)
- Department believes the present proposal to be discriminatory. The problem is a general one and the burden of solution should be borne by the Government of Chile and Chilean economy generally.
- (4)
- Increased cost of production at Chuquicamata would have to be borne directly by the United States Government. Thus the results of the contemplated Chilean action would have to be considered at once by the United States Government in making its plans for purchases of Chilean copper in the coming months.
- (5)
- It should also be pointed out that by an undue increase in the cost of production, the Chileans will make it more difficult for Chilean copper to compete in the world market, thus in the long run seriously jeopardizing one of their two principal sources of livelihood, as well as the American investment in the Chilean copper companies. Under such conditions, this Government could not be expected to make continued and vigorous efforts to assist Chile in this general matter.
In connection with the foregoing presentation of the Department’s views, you and Brooks48 will undoubtedly want to be particularly careful in presenting the last point in order to avoid any implication that the Department is proposing to retard any reasonable advance in the position of Chilean labor.
Hull