825.51/6–1446: Telegram

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

secret

559. I consider inadvisable communicate import of Deptel 307, June 13 to appropriate Chilean authorities. I fully sympathize with first factor referred to but regrading second factor, I feel that proposed small loan for proving field where petroleum has already actually been found, is only mildly speculative. Regarding third factor, utilization of foreign private capital impossible at this stage in view of existing Chilean legislation and public opinion.

My detailed views on petroleum loan are given in secret letter to Mr. Acheson54 concerning policy and information statement forwarded today’s pouch. I again urgently recommend granting of loan and wish to be on record as warning Department of far-reaching adverse political consequences if further funds in some amount to continue exploration are now denied.

Bowers
  1. Not printed.