862.852/01
The Ambassador in Chile (Bowers) to the Secretary of State
[Received December 5.]
Sir: With reference to the Embassy’s despatch No. 139 of November 8th last, I have the honor to report that newspaper articles apparently based on statements secured at the Foreign Office have now appeared to the effect that Chilean negotiations for the acquisition of the S. S. Frankfurt and the S. S. Dusseldorf reached a stalemate on the 24th instant. The German Ambassador, accompanied by his counselor, conferred extensively with the Minister for Foreign Affiairs and the Under Secretary of Commerce on that day; and the state[ment] was thereupon published that the negotiations had been terminated because of disagreement as to prices. It was intimated that the Chilean Government has not abandoned its intention of acquiring additional ships for the expansion of its merchant marine, and might undertake negotiations with other countries. The Under Secretary of Commerce had discussed the matter informally with a member of my staff a day or two earlier, and indicated the possibility that the purchase of American merchant ships might be considered if the prices should not prove [Page 83] to be too high. He mentioned that ships not to exceed 7,000 gross tons would be desired, and that refrigeration facilities would be a consideration. In a subsequent press interview, however, Señor Vigar has stated that the war dangers to navigation in Europe are driving abundant tonnage into the South American trade, so that Chile will not need to concern herself as to purchasing merchant ships. Conceivably the Chilean attitude may be based on the thought that the German prices on the two vessels in question may yet be brought to a level which would permit a transaction.
Respectfully yours,