825.24 FLC/5–1947: Telegram

The Secretary of State to the Embassy in Chile

confidential

256. Urtel 388 May 19. Million dollars in pesos may be used for purchase aircraft and supporting equipment now in Chile and 10 [Page 525] AT–11’s not yet flown Chile. Chile has made firm commitment for these aircraft. In addition, there were originally approved for program 13 P–47’s, 4 C–47’s, and 8 AT–11’s. These withdrawn by War Dept from program and therefore no longer available because Chileans did not make firm commitment by March 15, necessary deadline imposed by War Dept on acceptance offers of aircraft to all countries participating program. Price of aircraft and spare parts which Chile committed to purchase is about $860,000. Remainder of million dollars in pesos may be used to purchase other air equipment in program such as training ammunition and base maintenance equipment. Field Commissioner for Military Programs is best qualified to discuss details of program and Chileans should be advised to conduct further negotiations with Fid. Comm. through Chilean Emb Wash.

Marshall