740.25112 RP/8–1544

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

[Extracts]
No. 10479

Sir: I have the honor to report the following developments in the program of the Chilean Government to control Axis commercial [Page 777] activities, which occurred last week during the visit of Mr. Francis H. Russell, Chief of the Division of World Trade Intelligence.

In view of the recent important developments described in my despatch No. 10389 of August 3, 1944,29 and inasmuch as the principal purpose of Mr. Russell’s mission was to discuss the studies now being made by the Department and the British and Canadian Governments looking to the withdrawal of the Proclaimed List and other economic warfare measures from the Western Hemisphere following the cessation of hostilities in Europe, Mr. Russell’s visit to Chile was indeed timely.…

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Probably the most significant development was the decision of the Chilean Commission, taking advantage of Mr. Russell’s presence, to request the Embassies for a statement of future policy toward Chile with respect to the Lists and other controls, now that the Chilean Government had begun the program to deal with the principal Axis firms as outlined by the Embassies, and was rapidly taking steps to give it effect. For this purpose, the Secretary of the Commission, Sr. Illanes, transmitted to the Embassies through a member of my staff a memorandum29 prepared by the Commission dated August 9, briefly reciting what has been accomplished to date and indicating the immediate plans and intentions of the Commission, and in addition requesting the effective cooperation of the Embassies and their respective governments, particularly in the form of a total revision of the Proclaimed and Statutory Lists.…

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In view of the foregoing, the reply which had thus been prepared was submitted to the Chilean Commission at the Thursday afternoon meeting on behalf of the United States Embassy only. A copy and translation of this reply in the form of a memorandum dated August 10, is enclosed herewith.30 Messrs. Royden and Vechsler31 who were present at the meeting for their respective Embassies, declared that while they personally agreed with the United States reply, they could not give official concurrence thereto until authorized to do so by their Governments, which authorization they said they would endeavor to secure as soon as possible by cable.

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It should be mentioned that at the time of the submission of the United States reply of August 10, the members of the Commission read it with great interest, but made no comments about it except as stated below. Subsequently, members of the Commission informed [Page 778] my staff that they were satisfied with the reply, and that it not only served to clarify the position of the United States Embassy but would give the Commission much firmer ground upon which to stand in taking action against the principal Axis firms.…

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Respectfully yours,

Claude G. Bowers
  1. Not printed.
  2. Not printed.
  3. Supra.
  4. Myers J. Vechsler, Canadian Commercial Attaché in Chile.