Office of the Historian

237. Telegram 184182 From the Department of State to the Embassy in Chile1

Washington, July 24, 1976, 1853Z.

184182. Subject: GOC Review of Chilean-US Economic Relations. Ref: Santiago 7172.

1. During the course of a wide-ranging talk on July 22, Trucco told me that the GOC was examining the desirability of continuing to receive U.S. bilateral economic assistance. He noted that the amount is small and the problem large inasmuch as the Congress focuses on Chile as an aid recipient. He suggested that it might be better to dispense with such assistance altogether.

2. I replied that the problem in part seemed to lie in an impression among some members of Congress that our aid to Chile over these last three years has been disproportionately large when compared with assistance levels for other Latin American countries. With the Chilean level now coming more into line with others, I thought the difficulty would diminish. I added that we hoped to contribute in a modest fashion to Chile’s efforts to reconstruct her economy.

3. Comment: I suspect this is what the review reported in the reftel is about. I think we should let the Chileans make their own decision on this point, although we can’t be sure there is any real seriousness to it. They could just be showing their pique over the arms embargo again.

4. We will report on the rest of the conversation with Trucco by septel.

Robinson

  1. Summary: The Department reported on a conversation with Trucco, in which the Ambassador said that the Chilean Government was examining the desirability of continuing to receive U.S. economic assistance since the amount involved was relatively small and receiving aid subjected Chile to congressional scrutiny.

    Source: National Archives, RG 59, Central Foreign Policy File, D760286–0236. Confidential; Priority. Drafted and approved by Shlaudeman. In telegram 7172 from Santiago, July 22, Popper reported that the Chilean Government appeared to be reviewing its economic relations with the United States in light of the restrictions imposed by the Security Assistance Act. (Ibid., D760283–0096)

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