825.6363/406a: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
704. Without departing from the basic principle that larger than quota quantities of petroleum products cannot be delivered to any country participating in the Latin-American Supply Pool, the Department is agreeable in view of the present internal political situation to arrange for products to be made available at Talara for the loading of two voyages of the Chilean Naval Tanker, the SS Maipo. Three voyages as requested by Chile can not be approved. It is understood that no products in excess of 44,000 barrels of gasoline [Page 747] and 12,000 barrels of kerosene are to be loaded in total on both of these two trips. These quantities will as set forth in your telegram 1022 of June 13, 1944,66 provide for pool quota quantities during the period from June 1st to the arrival of the Anibal’s replacement, after making allowance for the unfortunate geographical division distribution of June 1st stocks.
The Anibal will be drydocked as planned at the conclusion of her present trip.
The foregoing is understood to be conditioned upon a firm realizable commitment from the Chilean Government assuring as from June 1st, 1944, the maintenance of the consumption of petroleum products in Chile within the pool formula allotments of all products. It should be made plain to the Chilean authorities that especially at this juncture of world military affairs, petroleum products from Talara or any other source of supply are not available in excess of pool quota quantities. The authorities should also be reminded, both the civilian and economic essential allotments are conditioned upon production and transportation availability and, depending upon developments in the petroleum situation, cannot be guaranteed as minimum quantities. Furthermore, because of the size of the tanker which is contemplated for assignment, as of late August, to the Chilean service in substitution for the Anibal it will be necessary to accumulate stocks in Chile in anticipation of a 2 to 3 months withdrawal of this vessel late in 1944 or early 1945. This withdrawal will not prejudice the delivery to Chile of total pool quantities of clean products. It will however be absolutely essential that the increased stocks be conserved for the period when the replacement vessel will be operating in other than Chilean service, since otherwise a situation of stock exhaustion would result for which no remedy could be assured. You should also make it clear to the Chilean authorities in this connection that the transportation, and supply situation at sources as well as Latin-American pool principles of equal treatment to all member countries will not permit the use of Chilean naval tankers or any other tonnage to result in supplying to Chile quantities in excess of pool formula quotas.
In view of the delicate situation involved with other members of the Latin-American pool, it is requested that you do your utmost to keep the granting of supplies for two cargoes for the Maipo from receiving any publicity.
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