Office of the Historian

235. Telegram 6507 From the Embassy in Chile to the Department of State1

Santiago, July 6, 1976, 1954Z.

6507. Subject: Chileans Show Their Resentment Over Aid Cuts.

1. Summary: Chileans give vent to their displeasure over restrictions on U.S. military and economic assistance by petty discourtesies. End summary.

2. For local reasons, Ambassador hosted large Embassy bicentennial reception July 2 rather than the fourth. That same morning, local press carried word that President Ford had signed security assistance act. News articles recapitulated effect of act on economic and military assistance for Chile.

3. Embassy reception was characterized by massive “no shows” among GOC hierarchy. President Pinochet had regretted previous day. Almost entirely without sending regrets, none of his advisory staff attended; Foreign Minister and Under Secretary were only cabinet or sub-cabinet members present; and army and navy each sent only one low-level representative. On other hand, junta member and air force CINC, General Leigh, and most other air force officers invited were present, undoubtedly because aircraft are the only major hardware items still to be delivered to Chile. From reliable sources we have heard that orders re GOC attendance at reception went out to officials during day July 2.

4. Attendance by hundreds of non-governmental figures, lower-level government officials, and press and media was excellent. For first time in our memory, Cardinal Silva was present.

5. We gather from local press that President Pinochet sent message of congratulation to President Ford. Foreign Ministry’s note of good wishes to President Ford, the Secretary and Ambassador was received in Embassy, signed only by Chief of Protocol.

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6. We will watch carefully to see whether Chileans follow up with substantive retaliatory measures.

Popper

  1. Summary: The Embassy reported that top Chilean officials signaled their displeasure over U.S. Government aid restrictions by not attending a reception in honor of the U.S. bicentennial.

    Source: National Archives, RG 59, Central Foreign Policy File, D760260–0864. Limited Official Use. On July 1, the Department informed the Embassy of the limitations imposed on Chile by the Security Assistance Act, signed by Ford on June 30. The Act prohibited military assistance, including education, training, credits, and cash sales. In addition, it capped economic assistance at $27.5 million for FY 1977. (Telegram 163805 to Santiago, July 1; ibid., D760255–0646) On July 2, Cauas stated that because the limitation on economic assistance had been expected, and the amounts were small, the limitation would not affect the Chilean economy. (Telegram 6661 from Santiago, July 9; ibid., D760265–0557)

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