825.5045/11–1246: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received 11 p.m.]
991. Mytel 985, November 9.14 Braden Copper offered November 9 arbitrate solely on wages.
Yesterday in 2-hour conference President15 told Braden officials offer did not go far enough; that he could not break with Communists so soon and if offer not amplified would have to resort to insistence decree “or some other type of decree”; that if three Liberals in Cabinet would not sign decree, would be necessary replace them with Ministers who would. President said he would be personally grateful if company agreed to principle of full arbitration and offered appoint any type arbitral body company might choose with arbiters completely acceptable to company (any arbiters acceptable to company would [Page 606] undoubtedly throw out as illegal all demands not based on labor code). This supposition supported by President’s promise of complete fairness and statement that “there are some persons in Chile who still believe in due process of law and I am one of them”.
President said company’s refusal accept full arbitration would split Government wide open. Am informed Turton impressed and now favors arbitration on President’s terms on grounds rejection would imply distrust of President personally.
President considers full arbitration politically essential. In view his assurances of a fair dealing, I feel arbitration probably advisable since refusal could undoubtedly result elimination our friends from Cabinet and push Government further into extremist camp. We here are persuaded of the President’s sincerity and if the company can practically name the arbitrators there would be nothing to fear.
In view critical situation here believe Braden Copper must decide policy before arrival Stannard (Deptel 544, November 9). Braden officials tell Labor Ministry company could probably reply evening 13th and Government expected withhold action until then.