825.34/11–3046: Telegram

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

us urgent

571. Ref sale ships (Embtel 104148), FLC ready sign contract now for sale two AKA transports included in interim program (Deptel 206 Apr 12) at 25% cash payment balance 5 years. Chilean Chargé here obtaining final clearance from his Govt on technical clauses contract.

Two AO tankers (also part of interim program) must under law be sold by Maritime Commission (Deptel 442 Sept 4) which has not yet straightened out legal questions involved in credit sale of naval vessels to foreign governments including question of mortgage. Same situation applies merchant cargo vessels which Chile wants outside interim program.

In view these difficulties it was suggested to Chargé on Nov 26 that no further crews be sent to the States until all matters concerning further purchases vessels completely resolved.

You may make such use above info as you deem appropriate.

  1. Not printed.