825.24/519: Telegram

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

1007. Department’s instructions mimeographed March [May] 1524 and 1522, May 27.25 To assist Embassy in preparation of new requirements studies Junta26 has given notice it will issue Certificates Necessity for 1943 only to firms reporting their needs before specified date. Local officials large mining companies unwilling submit such reports to Junta claiming latter should have no jurisdiction over their orders [Page 90] which are being cleared by their New York offices without certificates. Although they would prepare estimates for Embassy they insist more complete and accurate data available in the United States.

I see no practical advantage in having Junta certify requirements Anaconda, Braden, Bethlehem, Cía. Sud Americana de Explosivos and nitrate companies which relate directly to our war effort.

On the other hand if Junta should be called upon to issue such certificates these companies would have to supply it full detail regarding their consumption, stocks and orders which might create bad feeling by emphasizing preferential treatment accorded American controlled industries producing strategic materials compared to other Chilean industries and possibly create serious difficulties. I, therefore, recommend that everything relating to supplies for the large mining companies including estimates, requirements and clearance orders be handled direct with their New York offices entirely apart from the allocations system. A precedent for such special handling will do no harm in the case of petroleum products.

Telegraph urgently whether this can be arranged.

Bowers
  1. No. 1449, not printed; it requested a review of a list of exporters as to their desirability (740.00112A European War, 1939/11507i).
  2. Not printed; it enclosed a questionnaire sent as a guide in the preparation of reports on iron and steel requirements (810.20 Defense/2682a).
  3. The Junta Nacional de Abastecimiento was an official body that drew up regulations governing the distribution and consumption of raw and manufactured goods.