825.6374/8–1545: Telegram

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

660. Deptel 657, August 13.41 In discussions with Chilean authorities re nitrate negotiations do not give any indication to Chileans that nitrate contract will be renewed. Entire subject of war power authority to purchase commodities not in scarce supply is under review. It appears doubtful that WPB can issue directive on FEA to purchase Chilean nitrate with subsidy, and until situation is clarified, no encouragement should be given Chilean authorities that contract will be renewed. Dept and war agencies are fully aware of importance of orderly transition and you will be advised immediately regarding developments.

  1. Not printed.