Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

825.6363/338: Telegram

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

Santiago, June 12, 1943—4 p.m.
[Received 10:16 p.m.]

1069. Department’s 600, June 10, 9 p.m.⁷⁰

1. Fuel oil statistics will be submitted later. Based January–February consumption monthly figures A not controlled by DPS⁷¹ 78,000,000 liters, A controlled 6,000,000, B controlled 1,000,000. Of 78,000,000, 19,000,000 nitrate production, 45,000,000 Anaconda and 5,000,000 bunkers. Some reductions could be made principally in nitrate. No action taken by Chilean Government to obtain about 120,000 liters monthly from Argentina to cover nitrate purchases. Might be possible reduce monthly consumption to 80,000,000 liters principally through reducing uncontrolled consumption.

2. Impossible estimate how much gasoline destined for agriculture diverted to pleasure car and other use is factor, however.

3. Of 27,000 passenger cars in Chile not including taxis, approximately 7,000 in use November whereas approximately 5,000 are now in use in Santiago and 1300 in Valparaiso. In whole country approximately 12,000 in use. Embassy feels essential economy of Chile can be maintained with 6,000 passenger cars including armed forces and official. DPS states it cannot reduce gasoline consumption to 6,900,000 liter consumption of November without causing damage to essential economy.

Comment:

A. Casanueva,⁷² who has no authority in matter so far as Embassy is informed, will probably ask for 1,600,000 liters diesel monthly for agriculture, basing request on approximately 700 diesel tractors imported in 1941 and 1942 and on results of food conference at Hot Springs.⁷³ Embassy considers its submitted estimates sufficient. Likewise he will probably ask for about 1,400,000 liters of kerosene while 800,000 liters sufficient based on our preliminary studies.

B. Consumption of gasoline particularly subject to political and friendship pressure which cannot be successfully resisted by local authorities unless reinforced by specific requests from us. Suggested that official suggestion be made to Chilean Embassy that number of passenger cars in circulation in Chile be reduced to 6,000 as cooperative measure to save gasoline and tanker space for use of our armed forces.

C. Embassy feels new diesel quota should be held closely as possible to figures submitted with despatch 6547⁷⁴ even if adjusted to 1941 basis to conform Nuland formula.

D. Embassy suggests practical advisability inviting Martinez to United States to discuss all phases.

Bowers

70. Not printed.
71. Directorate of Petroleum Supplies.
72. J. Manuel Casanueva, Director General of Agriculture.
73. For correspondence regarding the United Nations Conference on Food and Agriculture at Hot Springs, Virginia, May 18–June 3, 1943, see vol. i, pp. 820 ff.
74. May 20, 1943, not printed.