825.6363/401: Telegram

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

960. The announced decision of the Petroleum Pool Committee that the present trip of the Anibal would be the last until late August has precipitated action by the Chilean Government to avoid the complete failure of gasoline supply.

The Embassy has been unofficially informed that the authorities regard the situation as so serious that President Ríos has directed the Foreign Office to instruct the Chilean Ambassador in Buenos Aires61 to support oil companies’ efforts to charter an Argentine tanker to carry gasoline for temporary relief on the Talara62 run.

Despite drastic rationing measures effected June 1 initiated by Embassy pressure based on your A–264 of April 1863 anticipated gasoline arrivals will not avoid certain early supply failure predicated on less than pool consumption formula during June, July and August. Tanker Don Pancho ex-Itororo, now under repair and subject to chronic breakdowns. Present stocks Valparaiso now seriously under necessary operating minimum.

The present situation, regardless of causes, is regarded by the Embassy as dangerous and may very easily have political repercussions unfavorable to the United States. It is essential that immediate consideration be given to turning around the Anibal for another trip to [Page 743] Chile in July substituting another tanker or as possible alternative assisting Chile charter an Argentine tanker for one or more voyages.

Bowers
  1. Conrado Ríos Gallardo.
  2. Seaport near the Chilean boundary with Peru.
  3. Not printed.