811.659 Automobiles/413: Airgram

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

A–153. Your A–110, August 31. Investigation reveals that the bulk of the substantial exports of automotives you mention went forward under old export licenses granted the latter part of 1941 and which were not revoked. As of July 1, further licensing of automotives to Chile has been suspended subject to the Embassy’s advise on applications presented. Furthermore, all outstanding licenses for automotives as yet not exported will be revoked and subject to re-examination.

Referring to your airgram no. A–92 of August 25, 1942,29 the Department requests that you inform the appropriate Chilean officials that the re-export to Argentina of automotives licensed for consumption [Page 93] in Chile is considered by the Office of Exports as an attempt to evade the conditions and responsibilities incurred by the license under the general terms of the license granted and that unless this movement ceases it may result in the offending importing dealers being cut off from any further repair parts or accessories. In discussing this matter, please point out that the stock of automotives now in Chile must serve for an indefinite period and that no more automotives can, or will, be licensed to Chile because there are no more available. Please also inform the Department promptly as to the names of the dealers who are selling automotives in Chile for export to Argentina. For your strictly confidential information the Department has, as a matter of policy, secured the suspension of all exports of automotives from the United States to Argentina since July and the action of the Chilean Government in facilitating the movement of automotives to Argentina via Chile is embarrassing.

Hull
  1. Not printed.