740.25112 RP/8–1544

Memorandum by the Ambassador in Chile (Bowers) to the Chilean Controls Commission 25

The action taken by the competent authorities of the Chilean Government looking toward the forced sale, reorganization or liquidation of the Axis spearhead firms in Chile which are referred to in the memorandum of August 9, 1944 of the Ministry of Foreign Relations,26 has been noted with the highest gratification. The authorities of the United States Government who are charged with the administration of the Proclaimed List are desirous of cooperating with the governments of those countries which are engaged in carrying out the resolutions of the Conference in Rio de Janeiro and the resolutions of the Washington Conference of the heads of Central Banks, in coordinating the Proclaimed List with the action taken by those governments. It is hoped that in this way it will be possible to reduce substantially the number of names on the Proclaimed List and to restore many firms to a full participation in the economy of the country.

In addition, the Proclaimed List authorities of the United States Government are presently concerned with the possibility of the complete or virtual withdrawal of the Proclaimed List from certain countries following the cessation of hostilities in Europe, and prior to the termination of the War in other theatres. It will undoubtedly have been noted that a release issued by the Department of State on May 4, 194427 stated: “The problem of eliminating economic-warfare controls, and in particular the Proclaimed List, is believed in general to be capable of prompt solution (following the cessation of hostilities in Europe) in regions far removed from the scene of conflict where the spearheads of Axis aggression have been eliminated.” It is the hope of the Proclaimed List authorities that the action which has been commenced by the Chilean Government, as referred to in the memorandum of August 9, will have reached a state of completion in time to permit the complete or virtual withdrawal of the Proclaimed List for Chile at the same time that such action becomes possible with respect to other countries in the Western Hemisphere. The Proclaimed List authorities will therefore welcome information concerning [Page 776] the completion of the forced sale, reorganization (with appropriate elimination of undesirable personnel), or liquidation of the spearhead firms which have been the subject of discussions between the Chilean authorities and the Embassy and which, for the purpose of convenience, are referred to in the appended list.

The Proclaimed List authorities appreciate, moreover, the desire of the Chilean Government to secure the deletion of the names of a number of Chilean individuals and firms following the initial steps which have been taken by the Chilean Government in the development of the program outlined in the memorandum of August 9. During the period required for the completion of the forced sale, reorganization or liquidation action by the Chilean Government, the Proclaimed List authorities are prepared to consider the deletion of a number of Chilean names from the Proclaimed List in each supplement. The names to be deleted would in the main be those relating to the firms or individuals who cloaked for or otherwise collaborated with spearhead firms and persons and those whose activities in recent months have indicated that, as a result of the control measures taken by the Chilean Government, and as a result of a sincere change in attitude, they no longer constitute a serious danger to hemispheric defense and who are willing to give undertaking of future satisfactory conduct. Upon the completion of the measures proposed by the Chilean Government, the Proclaimed List authorities are prepared regardless of the course of hostilities in Europe to reduce the list to a minimum number of firms and individuals whose activities are considered to be inimical to the interests of the United Nations. It is understood by the Proclaimed List authorities that the measures which are contemplated by the Chilean Government include action to acquire and to regulate the use of patents and trademarks controlled from Axis territory.

The Commission has of course noted that the United States authorities have already given indication, through deletions, of their desire to coordinate listing policy with the measures taken by the Chilean Government since the beginning of the current year.

  1. Copy transmitted to the Department in despatch 10479, August 15, from Santiago, infra.
  2. Not printed.
  3. Address of Francis H. Russell at the Annual Meeting of American Drug Manufacturers Association, Department of State Bulletin, May 6, 1944, p. 405.