740.25112A/3–2246: Telegram

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

confidential

316. Under Secretary Aliaga yesterday confidentially informed Economic Counselor67 that he personally hoped that PL (Proclaimed List) would not be withdrawn at any time soon for Chile since such action while politically expedient here would be against best international interests of Chile. He said that certain other names might well be deleted but the list as a whole retained.

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Aliaga also suggested that it would be highly convenient from the standpoint of local replacement program68 for Allied Control Commission in Germany to announce that they had taken over all Axis property in Chile, and other Latin American countries, including trade marks. When asked how such unilateral action could be justified, he replied that it could easily be adjusted so far as Chile is concerned and would greatly simplify work of Chilean Control Commission (see Deptel 951, Dec 1769). Aliaga’s remarks were probably prompted by press report that a deputy for Santiago will interpellate the Govt concerning Axis property and funds “confiscated” here. Aliaga also remarked that, of course, no funds had been “confiscated” but merely “intervened”. He obviously fears a campaign to restore such funds to their original owners and, therefore, suggested ACC announcement as best way to obviate such danger. There are reasons for believing that Aliaga is in distinct minority with respect to this problem and that he may not be able to implement his views.

There have been persistent rumors that Aliaga may be replaced by Under Secretary Ruiz, but no confirmation.

Bowers
  1. William E. Dunn.
  2. The replacement of Nazi financial controls with local financial interests.
  3. Not printed.