825.34/9–646: Telegram
The Ambassador in Chile ( Bowers ) to the Secretary of State
[Received 11:45 p.m.]
809. Rear Admiral Holger, Chief Naval General Staff, requested Chief United States Naval Mission approach me and ascertain if minor vessels and auxiliary vessels of interim program offered Chile and listed Department’s telegram 206, April 12 could be paid for in five yearly installments. Holger said between 20 and 25 million paper pesos available each year taken from special taxes for this purpose i.e. to obtain general material and types of naval craft other than cruisers. Holger emphasized that Chilean Government desired acquire these vessels soon as possible. Re last paragraph Department’s telegram 442, September 4, it may be pointed out Holger stated all of vessels, including transports and tankers will be commissioned in Chilean Navy.
Though I am not aware of terms on which these sales are customarily made I hope Department may find it convenient and possible [Page 574] reach agreement with Chile on terms suggested.44 In making this recommendation I have in mind fact that we have been unable offer Chile larger combatant vessels which they are primarily interested in obtaining and therefore it seems desirable meet their wishes on smaller vessels which we have offered Chile. Furthermore, I feel British offer three cruisers (Embassy’s telegram 794, September 345 and previous) lends emphasis to wisdom of giving at this time earnest of our desire implement Staff conversation on terms attractive to Chile.