740.25112 RP/3–2946
The Ambassador in Chile (Bowers) to the Secretary of State
No. 13,734
[Received April 9.]
The Ambassador has the honor to refer to the Department’s circular airgram No. 170 dated March 4, 1946,71 requesting information on current replacement situation. In this connection reference is made to Embassy’s despatch No. 13528 dated February 19, 1946, and enclosure of a memorandum from the Chilean Minister of Foreign Affairs dated February 14, 1946,72 which memorandum contained all the information available at that time. Upon receipt of airgram No. 170 the following memorandum was transmitted to the Minister of Foreign Affairs under date of March 11, 1946.
“Reference is made to the memorandum of the Ministry of Foreign Relations dated February 14, 1946, pertaining to the immediate elimination of the Proclaimed List of Certain Blocked Nationals for Chile, copies of which were furnished to the Embassies of Great Britain, Canada, and the United States of America. This memorandum was immediately forwarded by the Embassies to their respective government, and has later been the subject of discussion by the Control Committee of the Embassies. This Committee is of the opinion that certain additional details would be helpful in expediting a final decision by the authorities in Washington. It would therefore be greatly appreciated if the Ministry of Foreign Relations would supply the following information pertaining to each of the five Axis firms referred to in the Ministry’s memorandum of February 14: [Page 583]
- 1.
- Total value of assets of each firm under liquidation.
- 2.
- Value of assets already disposed of.
- 3.
- Value of assets still unsold, and the nature of such assets.
- 4.
- Estimated period of time which Hamdorf and Compañia will require to complete its voluntary liquidation.
For the Allied Control Committee:
W. E. Dunn,
Chairman”
In answer to our request for additional details concerning liquidation of certain spearhead firms, the enclosed report73 from the Corporación de Fomento de la Producción (Interventor for Ferrostaal G.M.b.H.; Cía. General de Anilinas y Productos Químicos, Soc. Ltda.; Química Bayer y Cía. Ltda. and Merck Química Chilena, Soc. Ltda.) has been received.
The information given in the present report on current replacement situation in conjunction with the information presented in memorandum of the Chilean Minister of Foreign Relations dated February 14, 1946, presents a fairly accurate picture of the actual status of the firms mentioned in the report.
With reference to the five specific points mentioned in paragraph three of the Department’s circular airgram of March 1946, the following information is submitted:
- (1)
- Report on the current status of each spearhead firm which has not been eliminated, giving estimated net worth of each firm and the percentage of enemy interest: It is assumed that a report is desired only on the five spearhead firms (not seven) which were discussed with Señor Ruiz during his visit to Washington. The attached report gives the net worth of each of these firms, with the exception of Hamdorf and Company which is undoubtedly bankrupt and going through voluntary liquidation. There is no enemy interest in any of the remaining four firms as each of them has entirely been taken over by the Fomento Corporation, except for certain trade-marks.
- (2)
- Likelihood of effective action in near future against spearheads not yet intervened or otherwise placed under government control: There is very little likelihood that any further action will be taken against other prominent firms which were believed to have had Axis sympathies. In fact, the Chilean Controls Commission considers that all spearhead firms which could constitute any danger to the Allied cause or the United Nations have been placed under adequate control or intervention. It is very difficult to take issue here with this point of view.
- (3)
- Estimate of time required to complete replacement program: It is very difficult to make any estimate of the time that would be required to liquidate all property which has been intervened by the Chilean Government, but as has already been stated all assets are now in the possession of the Chilean government except trade-marks [Page 584] and there is little or no likelihood that enemy interest will be allowed to come in again. The actual disposal of certain real estate, stocks, trade marks, etc., however, may yet require a considerable period of time to complete.
- (4)
- Effectiveness of local controls and any recent action taken to increase or lessen their effectiveness: It is felt that local controls to date have been fairly effective and the Chilean government deserves full credit for having eliminated all of the important Axis firms which have had any international organization. Those firms that remain are regarded as purely Chilean. The fact, however, that it is known to be the firm policy and desire of the present Chilean government to abolish the list immediately has undoubtedly tended to lessen its future effectiveness.
- (5)
- Present prestige of the list locally: The Proclaimed List is extremely unpopular in Chilean administrative circles, but it is still respected and feared.
The local Allied Controls Committee is now working energetically to bring about definite action with reference to Axis trade-marks in Chile before the Proclaimed List is eliminated or withdrawn. This problem is extremely complicated because there are distinct cross currents in the Chilean government which have opposing views as to what disposition should be made of such marks. It is hoped, however, that within the next ten days or two weeks a satisfactory program can be agreed upon, although this outcome can by no means be assured.