825.5045/11–1246: Telegram
The Acting Secretary of State to the Ambassador in Chile (Bowers)
us urgent
niact
548. Kennecott’s understanding of Chilean arbitration suggestion differs markedly from that contained in second paragraph urtel 991. [Page 610] Stannard has checked this in additional telephone conversations Turton today.
Stannard is instructing Turton to deliver message Chilean Pres. informing latter that Stannard and two additional members of board arriving Nov 18 “determined to work out an agreement fair to workers, fair to company and in interest of Chile”. (Chargé Rodríguez just called and conveyed urgent message from FonMin conciliatory in tone stating that Chilean Govt had not set deadline for acceptance of arbitration on all points proposal, urging that Stannard arrive soonest possible, and referring to determination Chilean Govt respect rights foreign enterprise.) When Stannard arrives, it is suggested that you and/or Dunn16 present him to the Pres and extend every assistance. Previously thereto, Dept hopes you will have found favorable opportunity convey substance views expressed Deptel 544, Nov 9.
For your own secret info, while as previously indicated decision regarding its attitude toward Chilean request for arbitration must be reached by Company alone, Dept finds it difficult in evaluating situation to ignore both comments volunteered you by Fernández urtel 947, Oct 2317 and remark reported to have been made by Pres to Turton in which former regretted that company should be caught between Communists and Socialists and fact that Chilean Govt is in effect asking an American company to place itself in grave jeopardy in order to assist the new Chilean administration in extricating itself from a difficult political situation in creation of which company played no part. While we have every desire to continue to collaborate with Chilean Govt and people they have reciprocal responsibility to provide fair and equitable treatment of American interests.