740.25112 R.P./9–944: Telegram

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

988. ReDeptel 984, September 13.34 The British Embassy here has received a report from the British Embassy at Santiago that the efforts of the Consultative Commission to carry out the expropriation program are being hampered by such fiscal bodies as the Corporación de Fomento and the Superintendent of Banks. It is also reported that if the Committee does not receive further backing from the fiscal bodies concerned, the members are considering resigning from their posts.

[Page 780]

The British Embassy has suggested the desirability of a simultaneous approach to the Chilean President and to the Minister of Foreign Affairs by the British and American Ambassadors. The President and Minister would be told that if certain action (presumably completion of liquidation or sale of certain firms and the commencement of such action with respect to the balance of the firms agreed upon for such action) has been completed by a given date, the American and British Governments are prepared to delete immediately thereafter all Category 3 cases. MEW has expressed its approval of this approach. As stated in the telegram under reference the Department desires to cooperate with the Consultative Commission as completely as possible as long as (1) it appears that the Consultative Commission is proceeding energetically toward the effectuation of the expropriation program and (2) it appears that the Consultative Commission can secure the necessary backing from the officials of the Chilean Government who are concerned. In the absence of either of these conditions the Department believes that an indication of this government’s concern over the absence of the expected progress should be made through a cessation of deletions and a resumption of additions.

In any event, and regardless of the rate of progress of the Consultative Commission, it would appear to be desirable for the American and British Ambassadors to make approaches to the Chilean President and Minister of Foreign Affairs such as has been suggested above. Unless you see strong objections to such an approach you are requested to consult with the British Embassy in effectuating it. Such approaches would appear to offer a means of strengthening the position of the Consultative Commission in view of the complaints that they have made concerning the lack of support from other agencies in the Chilean Government.

Hull
  1. Not printed.