462.OOR/10–3146
The Ambassador in Chile (Bowers) to the Secretary of State
No. 14583
[Received November 21.]
Sir: I have the honor to refer to the Department’s confidential airgram No. A–346 of September 30, 1946,82 on the final disposition of German assets in the Western Hemisphere, and to report that in reply to an inquiry from this Embassy the Chilean Ministry for Foreign Affairs, in Note No. 10794 of October 28, 1946, outlined its views and commented on the local legislation on this subject. A copy and translation of this note are enclosed.82
The note in question states that Chile considers that whatever formula may be adopted for the final disposition of German assets in this Hemisphere should apply not only to German assets, but to all Axis assets. With reference to the contemplated action of the United States in waiving any claim to German assets in the other American Republics, the Chilean Government believes that this “generous” action should be followed by all of the other American Republics, that is, that none should request a share in the Axis assets controlled by the other American Republics. (This statement apparently ignores the fact that German assets available in the United States are believed to be wholly inadequate to satisfy the legitimate reparations claims of the United States, whereas the German assets in the case of some of the other American Republics will be in excess of such claims.) The note states that any obligation to give up excess assets would react most unfavorably on the economies of some of the Latin American countries and points out that such assets are incorporated into the national economy of each country and have been produced or built up by the natural resources and labor of the countries concerned.
The note refers to the various economic control measures adopted during the war period and concludes with a reference to Decree No. [Page 591] 740 (reported in my Despatch No. 14,366 of August 27, 1946,83 file 400, entitled “Government Designates Chilean Commission to Receive Chilean Claims Arising from the War”) and the statement that “with the termination of the tasks of this Commission, it is logical to assume that a series of legal measures will be approved that will determine the final destination of the Axis assets in Chile”. It would appear, therefore, that the present intention of the Chilean Government is to determine locally the final disposition of Axis assets in Chile without reference to the decisions of the Inter-American Economic and Social Council’s Special Committee on Enemy Property.
Respectfully yours,