825.51/7–1146
The Ambassador in Chile (Bowers) to the Assistant Secretary of State (Braden)
Dear Spruille: I have your letter of June 24th setting forth in detail our policy in reference to the petroleum matter. It is in accordance [Page 635] with my understanding of our policy. But there is one sentence in your letter which indicates that you are under an entirely erroneous impression as regards the Chilean Government. You say that “efforts of the Chileans to persuade us to grant this loan because of the unfavorable publicity arising out of the Standard Oil story impress me as pretty close to blackmail”. I have [not] seen nor heard anything indicating any such thought on the part of the Chilean Government. The bad effect of the publicity regarding Standard Oil is not with the Government but the uninformed man on the street who might easily be impressed by the enemies of the United States, Nazis, Fascists, pro-Argentineans and Franco Falangists making use of the story. There was at the time some gossip about the possibility that Perón might take advantage of the situation to offer a loan but this was not heard by me in any official quarter. It was gossip I am sure the Department should have. I am sure the A.P. story as worded was unfortunate for domestic consumption here.
The Rightists are still balloting with Cruz Coke56 in the lead but with the possibilities so numerous that it is futile to report in detail. When the nomination is made I shall write you in full such observations as may occur to me.
Warm regards.
Sincerely,
- Eduardo Cruz Coke, Senator.↩