825.6363/408: Telegram

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

1082. Reference Department’s telegram No. 704, June 1 [16], 6 [4] p.m. At meeting yesterday with interested Chilean officials including Under Secretary of Economy and Commerce, Director of Petroleum Rationing and Director of Public Transportation, it was strongly reiterated to them that petroleum problem is one of product shortage as well as transportation. They were informed that cargo would be arranged for only one of the three proposed trips of Chilean Navy tanker; that Chile must give firm realizable commitment; that consumption [Page 749] of petroleum products will be maintained within pool formula allotments without which Embassy would not be inclined to approach Washington for further assistance; that circumstances do not permit pool formula quota for economic essential allotments and civilian supply to be guaranteed or considered as minimum quantities; that reserve stocks must be accumulated from deliveries.

The meeting revealed that all Chileans present were not convinced of product shortage in Peru, particularly as reference was made to offer of Peruvian Government to supply gasoline, reported in Embassy’s A–269, April 4 [11], 1944.69 Publicity given that offer left impression with public of ample gasoline lacking only transportation, despite Embassy’s repeated emphasis to Chilean Government to contrary.

Publicity given Chile’s decision to use navy tanker, prior to request for cargoes, conveyed impression that problem was solved. At no time has there appeared in local press suggestion that imports were also restricted by availability of gasoline. To counteract this erroneous impression it would assist materially should Department release statements regarding present accentuated supply problem to wire services for publication here.

The subject of gasogenes for autobusses was again strongly pressed in the hope that it may result in effective governmental measures to extend their use. Pending development of assurances against over consumption no information was offered concerning second cargo on even contingent basis.

Bowers
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