611.2531/8–2545: Telegram

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

695. Reurtel 1090 Aug. 25.47 Recent developments in nitrate have been as follows:

FEA notified Chilean Nitrate Sales Aug 1 that no new public purchase contract would be signed 1945–46.
110,000 tons nitrate being shipped to New York thus legally reverts to private trade;
US supply situation so favorable, WPB has recommended removal all domestic allocation and priorities control on nitrogen as of September 30.
Five of seven Army nitrogen plants declared surplus and about to be sold.

For your strictly confidential information Dept is considering recommending to FEA that it acquire under public purchase 110,000 tons nitrate already shipped as tapering-off measure in consonance our stand at Mexico City,44 though legally this Govt not so committed and FEA may well refuse. In addition Dept is asking OPA45 remove nitrate ceiling to thus end domestic war time controls on this product consistently with ending of public purchase.

Instruction fully covering these matters will follow soonest possible.

For your additional information, Inter-Departmental Committee will be considering Chilean counter-proposals trade agreement middle next week.46 As they stand now these Chilean proposals will doubtless be considered unacceptable to this Govt. Your despatch 1259947 not yet received.

  1. Not printed.
  2. Reference is to Resolution XXI, agreed upon at the Mexico City Conference; for text, see Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City, February–March, 1945, p. 61.
  3. Office of Price Administration.
  4. For documentation on trade agreement discussions, see pp. 824 ff.
  5. Not printed.