740.25112A/5–2445: Telegram

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

459. Urtel 729, June 6.93 Committee94 will reduce to hard core July 20 supplement. Forthcoming supplement of June 22 will contain only names listed in Records of Action May 14, May 29, June 1 plus 13 names listed in urdes 12,159, May 24.95 Cable concurrence.

Therefore, important you obtain satisfactory assurances as soon as possible that replacement program will be completed, also that enterprises will not be returned to former owners. Speak to Chileans about hard core on tentative basis since size and composition not yet decided.

You may wish to inform Chileans:

Reduction to hard core in July possible if assurances reed.
We continue attach great importance replacement program recently reaffirmed in Mex Resolution XVII.96
That we do not intend to return property vested by our APC97 formerly owned by German or Jap “enemies” as defined in Trading with Enemy Act98 or the proceeds resulting from sale such property, [Page 777] the plan being to offset this property against American claims. This info should be given informally. Report approx amount Chilean claims against Germany and value of German enterprises which have been eliminated.
Completion of elimination program will facilitate compliance by Chile with Mex Safehaven Resolution XIX.99
No definite decision reached on disposition German overseas assets remaining after satisfaction of claims of local Govt.

Requested by Brit Emb here that your Brit colleague be informed.

  1. Not printed; in it the Embassy urged postponing a reduction of the Proclaimed List to hard core offenders and suggested that this action be taken only if Chile provided assurances that the program would be completed (740.00112A/G–645).
  2. Interdepartmental Committee on the Proclaimed List.
  3. Not printed.
  4. For text of Resolution, see Pan American Union, Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City, February–March, 1945 (Washington, 1945), p. 55.
  5. Alien Property Custodian.
  6. 40 Stat. 411, and as amended by the First War Powers Act, 55 Stat. 830.
  7. Resolution on control of enemy property; for text, see Final Act of the Inter-American Conference on Problems of War and Peace, p. 55.