825.6363/402: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received 8:56 p.m.]
1006. Reference your telegram no. 659 of June 6. The Department’s estimate that pool formula consumption will virtually exhaust stocks July 15 is correct. Consumption at the rate of established June rationing of 39,000 barrels, as against May figure of 61,500 barrels and pool formula of 46,360 barrels, might stretch visible supply to August 1st figuring that the Don Pancho will bring 13,000 barrels about first week in July, providing repairs are completed. June figures entailed bids from May of 50% for trucks, armed forces, and industrial use, 10% for buses and taxis, and 90% for private automobiles. It is believed further reductions for even short period would cause serious repercussions.
Kerosene is also in short supply which may become critical if one of Chilean navy tankers now transporting this product should be diverted to transportation gasoline. Ministry of Economy is endeavoring to obtain use of Navy tanker for a single trip to Talara to alleviate the gasoline situation, but Embassy, is not too sanguine over this possibility.
Information has been received from Argentina to effect that no tanker with or without gasoline obtainable there.
It has again forceably been represented to the Minister of Economy and Commerce65 that the impending supply crisis is of Chile’s own making, that rigid drastic rationing below pool formula is imperative, at least until August, that definite assurances should be given that consumption will be strictly curtailed to pool formula for the balance of the year.
- Fernando Moller.↩