825.5045/10–1347: Telegram

The Acting Secretary of State to the Embassy in Chile


506. Chil Amb 15 following tel conversation Pres Gonzalez last night described current situation substantially as presented urtel 796 Oct 13. Told Amb reasonable certainty eight cargoes (about 72,000 tons) can be made available Chile remainder Oct and Nov not counting second cargo Oct allocation scheduled shipment Mobile next week in nitrate bottom. With one cargo already en route from Oct allocation this makes total 90,000 tons before end Nov. No guarantee can be given now but Dept will make every effort allocate stated minimum needs Dec and Jan if required. Investigating possibility release Balboa coal. Panama Ry has no coal for sale.

Amb told payment may present greater obstacle than finding coal. Urged Amb vigorously explore every possibility short term commercial credit since doubtful Eximbank authorized grant credit for coal and decision possibly adverse may take 10 days. Nevertheless Dept immediately presented situation Board Eximbank which promised careful consideration any request Chil Amb. Amb should be authorized [Page 509] give security appropriate to short term credit including possibly gold.

  1. Felix Nieto del Rio.