740.25112 RP/2: Airgram
The Secretary of State to the Ambassador in Chile (Bowers)
A–46. The Department has been pleased to learn of the expressed intention of Chile to implement the resolutions of the Rio de Janeiro and Washington Conferences by its control decree of January 14, referred to in your telegram 102, January 15, 1944,87 and by action to be taken thereunder.
It is hoped that the material forwarded to the Embassy in the Department’s despatch no. 3722 of January 1, 194487 will prove helpful in the discussions which members of the Embassy staff will undoubtedly have with officials of the Chilean Government in connection with control measures.
In this connection it may be that the advice of the Embassy will be requested on the general subject of the manner in which the Chilean controls might best be implemented. Although matters of detail and, indeed, of broad principle, must, of course, depend upon the manner in which the Chilean Government desires to administer its controls, and the type of action which it plans to take, the following general points may be helpful to the Chilean officials with responsibility for this work.
- (1)
- It has seemed desirable, on the basis of experience with other systems of control, to incorporate a broad statement of the purposes of the control measures. Included in such a statement probably should be a specific reference to a policy of implementation of the Rio de Janeiro and Washington Resolutions by the vesting, forced sale, or liquidation of important enemy business enterprises. In this manner an orientation which has sometimes been unfortunately lacking, may be provided for the commission or other body which will actually have to do the work under the control measures.
- (2)
- It appears highly desirable that whatever body is given the task of carrying out the decree and the resolutions issued thereunder, be given sufficient administrative authority so that it can perform a substantial portion of the task before reference is finally made to the appropriate executive officials in the government for the final clearance of the replacement plans which have been devised. It also seems desirable that some procedure should be arranged by which frequent consultations might be held between the Chilean administrative body and appropriate members of the Embassy staff.
- (3)
- It may appropriately be suggested that attention should first be given to those fields in which enemy interests have been particularly strong and dangerous. In this connection, the I. G. Farben interests and the interests in general of the German drug and chemical industry might receive primary attention. Such a program on the part of Chile would be well coordinated with similar programs in other countries, such as Colombia, which have been described to the Minister of Foreign Affairs88 in a memorandum, a copy of which was enclosed with the Department’s instruction no. 3722 of Jan. 1, 1944.89
- (4)
- It may be indicated to the Chilean authorities that the United States Government is prepared to extend its assistance in the carrying out of such replacement programs as may be devised by the Chilean Government. This point has already been made in the memorandum for the Minister of Foreign Affairs of Chile, referred to above, and it is believed that the Chilean Government is aware of the fact that the cooperation of the Office of Alien Property Custodian and the companies controlled by that Office, may be enlisted in its behalf. It is also believed that many of the American companies would be interested in such programs as might be devised by the Chilean authorities.
Please report any developments or reactions.