740.25112A/7–2246: Airgram

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

confidential

A–269. Reference your despatch no. 14,021 of May 31, 194680 concerning the status of spearhead firms in Chile. The Department appreciates receiving the information contained therein and it is hoped that the detailed report from the Chilean Government mentioned in the penultimate paragraph of this despatch will cover all points in question mentioned in a memorandum handed to Mr. Illanes, Commercial Counselor of the Chilean Embassy here, on May 8 which was based on instruction no. 5478 of April 23.80 The Department will also be interested in the Chilean Government’s reply to the questions posed in the British Embassy’s memorandum of May 15, 1946 which was quoted in the despatch under reference.

It is possible that the Chilean Government may not believe it necessary to furnish this information since the Proclaimed List is no longer in effect, but it should be emphasized that this Government continues to view with importance the receipt of detailed reports on reorganizations or liquidations of spearhead firms. The withdrawal of the Proclaimed List does not mean that all former Proclaimed List nationals are regarded by this Government as satisfactory agents for American business and it will be necessary for this Government to be informed at once of reorganizations and liquidations in order that the Department of Commerce may accurately report the status of such firms.

The Department also believes that exchange of information pursuant to Resolution 8 of the Washington Conference81 concerning reorganizations and liquidations before they are actually consummated [Page 590] and concerning proposed release from control of any concern with respect to which the Chilean Government has taken any action will continue to be mutually helpful. Considerable information is being received from Germany which may disclose enemy ownership previously unknown. This information no doubt would be of interest to the Chilean Government and could be made available under a continuation of consultations between the two Governments.

Byrnes
  1. Not printed.
  2. For text, see Pan American Union, Congress and Conference Series No. 39: Final Act of the Inter-American Conference on Systems of Economic and Financial Control, Washington, June 30–July 10, 1942 (Washington, 1942), p. 21.
  3. Not printed.