825.6363/2–2846: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received 9:19 p.m.]
253. Today’s press announces Govt has taken final action on decree (not yet published in Diario Oficial) conferring on Fomento Corp. all rights and responsibilities in connection with exploitation of oil recently discovered at Springhill, Tierra del Fuego. Newspaper text of decree states (summary) that in view of the fact that Fomento has [Page 621] been responsible thus far for preliminary work and is best fitted to plan and execute further development of oil resources it is decreed that Fomento shall (1) “take charge of the exploitation of the oilfields in said region”; (2) “plan and build storage, transportation, refining, distribution and other installations necessary for commercial exploitation of the oil gas and its derivatives” subject to presidential approval. Decree adds that any profits shall go to Govt pending passage of law determining Fomento’s share in earnings.
Gajardo head of Fomento is quoted in local news broadcast today as having told UP that Fomento has asked Eximbank for 3 to 4 million dollar credit line to finance further exploration and will soon apply for additional line of 13 millions for refineries to be located near principal consuming centers.