862.20210/2853a: Telegram

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

452. Department is gratified with progress in connection with PQZ case. Vigorous action in this case will also partially solve the problem presented by the PYL case, since some of the same individuals are implicated in both instances. However, other persons dangerous to hemispheric defense were prominent in PYL espionage activities and may not be identified with the PQZ ring. Equally vigorous action in the PYL case looking toward eventual prosecution, and employing the same type of examination of individuals as used in the PQZ matter might well produce additional information essential to the protection of Chile from subversive activities and to the defense of the hemisphere. In this connection, additional large sums of money earmarked for Axis espionage activities may be discovered.

Please inform Fernández of the above, expressing the hope that it will be possible to take further effective action in the PYL case.

Hull