810.74/513: Telegram

The Ambassador in Chile (Bowers) to the Secretary of State

1633. 1. Saw Barros Jarpa this evening about closing telecommunications. He said he had been discussing the matter with one of the men of the company which had proposed what he, the Minister, had suggested to me long ago, to refuse the use of the code to the missions of all countries sending outside this hemisphere. He said the German Ambassador would promptly protest and there would be a battle but that he would take the position that this Government cannot insist on a company controlled mostly by the people of the United Nations to put their property to the use of the enemies of these nations and that the Government could not interfere. He said then the Axis would probably plan to use the national telegraph to get their code messages to Argentina for transmission but that he could not conceive that Argentina would care to be put in the position of carrying forward this work against continental defense.

He said the President cannot break relations just now on the eve of his departure since he should be here in the event of any sabotage trouble and that on his return all these problems would solve themselves thus implying that on his return the President proposes to break relations. He said he does not want the President to go away with the telecommunication matter hanging fire because of the unpleasant feeling that would result.

2. Valenzuela, Chilean director who proposed the compromise solution of the Company’s refusing to accept for transmittal or delivery code messages, claims this would be a better solution than merely closing circuits with Axis territories, which would allow Axis Embassies to transmit over other circuits which could be listened into from their capitals. Jory asks that RCA instruct him how to note [vote] on this proposition.

3. Since writing the foregoing Valenzuela says he has just received a personal request from President Ríos asking him to postpone the scheduled directors’ meeting from tomorrow until October 8.

Reference Department’s 1163, October 2, 9 p.m.

Bowers