740.25112A/1–1046: Telegram

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

confidential

38. At meeting of Chilean Economic Controls Commission held yesterday in office of Under-Secretary Aliaga and attended by representatives of British, Canadian and US Embassies Commission’s memorandum dated Dec 31, 194556 was discussed. This memorandum reproduces text of identical memorandum taken to Washington by Ruiz57 in which immediate withdrawal of Proclaimed Lists for Chile was requested on ground that Chilean liquidation of spearheads had been satisfactorily completed. Memorandum goes on to say that pending decision on withdrawal of lists Chilean Govt requests deletion of 62 PL individuals most of whom Embassies here consider as unmistakable hard core cases. Copy of this memo and translation being forwarded first air mail.

Ruiz was present at meeting and claimed that absolute assurances had been given him in Washington that list would be withdrawn in Chile as soon as this Embassy reported on final liquidation of spearheads. Aliaga reversed his previous position that Chile did not wish elimination of lists as reported Embtel 1458 Nov 2158 and A–613, [Page 577] Nov 2459 and sided with Ruiz in requesting immediate withdrawal except for names of liquidated Axis firms. It is probable that personal friction has existed between Aliaga and Ruiz and possible explanations for Aliaga’s previous stand are (1) that he did not know about Ruiz proposal in Washington (2) he thought he could defeat it here or (3) he has not been straightforward with Embassies although if (3) true, undoubtedly because he was subjected to irresistible pressure from above.

Commission agreed to submit promptly up-to-date report on liquidation remaining spearheads which they said would fully corroborate Ruiz, statements in Washington. Since deletion of the 62 individuals asked for by Commission would be farcical it is difficult to see how fulfillment of assurance given Ruiz in Washington if they are as definite as he claims can be avoided.

These developments here probably due to political pressure and impending elections but I doubt wisdom of attempting to oppose Chilean desires if liquidation report is satisfactory. British and Canadian Embassies here have as yet expressed no definite opinion as to their attitude but appear to be in general agreement with foregoing analysis of situation.

Problem of Axis trademarks is closely tied in with foregoing problem but will be reported in separate telegram as soon as possible.

Bowers
  1. Not printed.
  2. Julio Ruiz, Under Secretary of Economy and Commerce.
  3. Not printed.
  4. For text, see Foreign Relations, 1945, vol. ix, p. 784.