Foreign Relations of the United States, 1946, The American Republics, Volume XI

825.6363/2–1646

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

confidential
No. 13516

Santiago, February 16, 1946.
[Received February 25.]

The Ambassador has the honor to enclose a self-explanatory memorandum³² in which the substance of a conversation with a Fomento Corporation³³ official concerning the financing of Chile’s oil industry is reported. A copy of this memorandum has also been transmitted to the American Embassy at Lima, Peru.

The Department’s comments on the position taken by the Embassy in this conversation would be appreciated for guidance in further discussions which undoubtedly will be sought by Chilean officials in the near future.

From the tenor of the discussion recorded in the enclosed memorandum, it is apparent that it will be extremely difficult to clear the atmosphere for private financing, or for private participation in the financing and development of Chile’s petroleum industry.

W. E. D[unn]

32. Not printed, but see infra.
33. Corporación de Fomento de la Producción, Chilean Government instrumentality.