740.25112A/798: Telegram
The Ambassador in Chile ( Bowers ) to the Secretary of State
[Received 6:45 p.m.]
1044. What attitude Chilean Government will be toward proposals your telegram 680, June 12 very largely depends on whether Government [Page 771] proceeds with vesting and liquidation Category I firms. Advisory Committee has just been replaced by new Controls Commission with executive powers whose official attitude toward program is not known as first meeting of new Commission will not take place for few days. However, we and British feel commitments stated in numbered paragraphs 1 and 2 can very likely be obtained, once we are authorized to approach Government, but believe it inadvisable to inform Government that no further attempts will be made to deprive listed firms of insurance.
Neither we nor British agree listed firms denied insurance could obtain coverage through Caja17 or Joint Protective Association. Caja can be relied on to cooperate and Protective Association would very likely be unable to obtain superintendent’s permission to operate.
In reaching final decision it should be kept in mind enemy interests have been virtually eliminated from insurance business in Chile. Treaties with enemy concerns have all been cancelled except for small amount life which Caja has with Phoenix Sud Americano. German companies are in liquidation and undesirable interests have now been eliminated from all listed national companies which will shortly be recommended for deletion.
- Caja de Reaseguradora.↩