740.25112 RP/8
The Ambassador in Chile ( Bowers ) to the Secretary of State
[Received February 5.]
Sir: Ref erring to my Despatches No. 8668 of January 2189 and No. 8684 of January 24, 1944, I have the honor to report further developments regarding the liquidation of the Banco Alemán Transatlántico and Banco Germánico de la América del Sud.
On January 25, 1944, Sr. Ramón Mesa B., Superintendent of Banks, was interviewed for the purpose of making arrangements to enable [Page 758] the Embassy to follow the liquidation of the banks as closely as possible and to ascertain the status of these proceedings at the present time. Sr. Mesa stated that he met with the representatives of the Banco Alemán Transatlántico and of the Banco Germánico de la América del Sud on January 21, at which time he advised them of the procedure that had been adopted for the purpose of putting into effect Decree No. 402. Under this plan the banks will proceed to liquidate in accordance with the Regulations issued by the Superintendent of Banks on January 21 and published on January 22, and such other Regulations which he may issue from time to time. The regulations of January 21 were transmitted to the Department in Despatch No. 8684 of January 24, 1944. The Superintendent has appointed a liquidator for each of the six offices of the Banks. The liquidators will supervise all banking operations, and are proceeding with the liquidations under Decree No. 402 and in accordance with the instructions issued by the Superintendent of Banks. These liquidators have assumed their respective posts as of January 24, 1944. It is the opinion of the Superintendent that it will require approximately one year to finally wind up the liquidation proceedings. He was confident that the program would proceed expeditiously and he anticipates no insurmountable difficulties through efforts to circumvent the regulations by the banks or failure to comply with same. The Banks, he said, had anticipated the liquidation decree would be forthcoming and accepted the Government’s decision after it had been made. It was his opinion that the powers conferred on him by the General Banking Law of Chile, as amended, particularly Title 5 were sufficiently ample in scope to empower the Superintendent of Banks to carry out the provisions of Decree No. 402.
According to the Superintendent any assets of the banks remaining after final liquidation would be frozen in the Central Bank. In his opinion the assets of the Banco Alemán Transatlántico after liquidation would be approximately 60 to 80 million pesos and the remaining assets of the Banco Germánico de América del Sud would be no more than 15 million pesos.91
The Superintendent added that notwithstanding his personal antipathy for the German branch banks in Chile and the Axis, he could not fail to recognize the excellent service that these banks had rendered to Chile and their tremendous value to the country in years gone by. He expressed a strong hope that American capital would take over these banks and replace them with other financial institutions so that the economic repercussions resulting from the liquidations would [Page 759] be minimized from the long-term point of view. However, he recognized that the recent banking operations of these banks has been so limited that no serious consequences will follow immediately from the liquidations. The Superintendent expressed willingness to cooperate with the Embassy in every respect and to supply such information as may be desired from time to time. In this connection, he will supply the Embassy in the near future with a statement evidencing the total deposits of the Banks, and a break-down giving the name and amount of deposits for all deposits of more than 100,000 pesos.
Enclosed herewith is a copy of financial statement of the German banks furnished by the Superintendent evidencing the financial position of these banks as of December 31, 1938 and as of November 30, 1943. There is also enclosed a letter from the Superintendent of Banks transmitted with the financial statement. Both enclosures are translated copies.92
The Department’s comments and, or suggestions would be appreciated with reference to any phase of the liquidation program. It is probable that in other American Republics a program was followed which may serve a useful purpose here. The Department may have special interest in securing special data or photostatic copies of certain records in the German banks.
An early reply in these matters will be appreciated in order that special consideration may be given them at an early stage in the proceedings here.
Respectfully yours,