810.74/496: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received 10:42 p.m.]
1599. In continuation my 1587, September 29, 4 p.m. Jory has discussed, in strict confidence, closure of Axis circuits with Valenzuela, Chilean director of Transradio Chilena, who has expressed himself as personally in favor closing not only circuits to Axis territories but all European circuits on grounds Transradio services must be reserved for American countries. The crux of situation now appears to be votes [of] Valenzuela and another Chilean director, Balmaceda, both representing C. E. I. C.
Valenzuela inclines toward using pretext that vital supplies for Transradio might be cut off if they continued to accept traffic for enemy countries rather than Rio Resolutions on grounds that this would be more easily accepted by Government. This line has been adopted by this and British Embassies in all other questions of enemy commerce in Chile and has not been seriously resisted by Chilean Government. Alternatively Valenzuela suggests that he might take line that in order to conserve existing apparatus and material it is essential to close the circuits to the heavy traffic now existing with enemy countries.
Valenzuela believes that his co-director, Balmaceda, might hesitate to vote for closure merely on grounds of compliance with Rio Resolutions but probably would go along on basis of first mentioned procedure. In this connection he observed that of a total of 7 votes 4 against 3 would not be very satisfactory and that every effort should be made to get at least 5 votes. This point has been discussed with British Embassy which is telegraphing its Foreign Office suggesting that it be arranged with C. E. I. C. to telegraph immediately to Valenzuela and Balmaceda instructions in the sense that supplies for Transradio will be cut off if they continue accept traffic for enemy countries.
Request that Department take the matter up urgently with C. E. I. C. in the same sense. C. E. I. C.’s instructions must reach [Page 153] Chilean directors prior to next meeting of Transradio Chilena board on October 6.
Please telegraph urgently instructive comment on foregoing.