740.25112 R.P./9–1344
The Ambassador in Chile (Bowers) to the Secretary of State
[Received September 21.]
Sir: I have the honor to refer to my Despatches No. 9490 of April 20, 1944 and No. 9851 of May 27, 194432 and to report further developments regarding the liquidation of the Banco Alemán Transatlántico and the Banco Germánico de la América del Sud.
The Chilean government has recently taken direct and vigorous measures as a direct result of instructions imparted by the local Controls Commission to the Ministry of Finance to bring about a more effective and complete liquidation of the German banks subjected to local Control Decree No. 402 of January 19, 1944. A copy of the Commission’s instructions to the Minister of Finance on the subject, together with translated copy,33 is enclosed herewith. Following these instructions of the Commission, the Superintendent of Banks, charged administratively with the liquidation of the banks, has issued a resolution whereby the Superintendent has taken direct charge of the liquidation program of the Banco Alemán Transatlántico and the Banco Germánico de la América del Sud as of September 5, 1944, the date of the resolution. A copy of the Superintendent’s resolution, together with a translation, is also enclosed.33 This measure was taken in accordance with the Superintendent’s powers under article 38 of the general banking law.
Pursuant to the above resolution the Superintendent furthermore issued instructions to the banks discharging the key German officials of the banks and replacing same with officials of the Superintendent’s staff. The newly designated officials will proceed in winding up the liquidation program. The remaining German personnel of the banks have been given dismissal notices effective as of September 30 and October 31, 1944. (See Embassy’s Despatch No. 9490 of April 20, 1944). A copy of the Superintendent’s instructions, together with a translation, is enclosed.33
[Page 779]In compliance with the Commission’s instructions, the Superintendent is also preparing press notices for a public sale of the Banco Germánico’s bank buildings in Valparaiso and Santiago and the Banco Alemán’s building in Valparaiso. The public sale of these three buildings will be effected within the next 15 days. The outstanding banking operations of the two German banks have been transferred to the Banco Alemán in Santiago. The building of the Banco Alemán in Santiago will likewise be sold at public sale as soon as the liquidation is terminated together with the Banco Alemán’s buildings in Valdivia and Concepción. The Superintendent is also making at this time a complete disposition of the German banks’ office equipment, and in this connection a sale has been effected recently whereby the newly organized Banco Sud-Americano de Vapores has purchased 370,000 pesos of office equipment from the German banks. (See Embassy’s Despatch No. 10,366 [10,636] of September 8, 1944.)34
The Embassy has been consistently pressing the Chilean officials relative to the liquidation program of the German banks in bringing about more effective and forceful measures which were finally adopted by the local government as described above in a manner as contemplated in the Rio and Washington Conference agreements. (See Embassy’s Despatch No. 9490). It is felt that the control measures as outlined above when fully applied will result in a satisfactory solution by the Chilean government of the economic warfare problem involving the German banks in Chile. It is now anticipated that liquidation of the banks will be fully terminated in the near future, and that the remaining assets of the banks will be blocked in the Central Bank of Chile.
Respectfully yours,