The Secretary of State to the Chilean Minister for Foreign Affairs (Fernández)24
Excellency: I have the honor to refer to the conversations which have been held, during the course of the Inter-American Conference on Problems of War and Peace, between members of the Chilean and United States delegations on the subject of the operations of synthetic nitrogen plants owned by the Government of the United States, and regarding the disposal of such plants. Those conversations have resulted in an understanding on the subject which is set forth below.
It is not the intention of the Government of the United States that the production by the Government of synthetic nitrogen in plants owned by it and constructed for war purposes, shall be continued beyond the period necessitated by the conditions or consequences of the war, except as may be necessary in order to maintain the plants in efficient operating condition for national security from the point of view not only of physical condition but also for the purpose of continuing scientific research and technological progress. Should it be necessary for the Government of the United States to modify this position, there shall be consultation with the Government of Chile before action is taken.
It is the intention of the Government of the United States, with respect to such government plants for synthetic nitrogen, constructed for war purposes, as may not be dismantled, or converted to uses other than the production of synthetic nitrogen, or maintained for national security, if the terms or conditions of cession, sale or lease of such plants to private interests might create serious problems affecting the production or exportation of Chilean nitrates, that there shall be consultation between the Governments of the United States and Chile with a view to reaching such accord with respect to those [Page 796] problems as will, while protecting the interests of the United States Government, give due consideration to the effects upon Chile, particularly from the point of view of the creation of unfair competition because of the terms or conditions of the cession, sale or lease of those plants.
With assurances of my respect and esteem,
- The Secretary of State and the Chilean Minister were attending the Inter-American Conference on Problems of War and Peace at Mexico City.↩