Office of the Historian

251. Telegram 10032 From the Embassy in Chile to the Department of State1

Santiago, October 16, 1976, 1610Z.

10032. Subject: Chile: FonMin Carvajal on Termination of U.S. Aid. Ref: State 252354.

1. In the course of my meeting with FonMin Carvajal October 15 he referred to his meeting with the Secretary in New York on October 7. Carvajal said the GOC has made a firm decision not to request further bilateral assistance from the United States. He said that the amount now involved was not significant enough in current Chilean [Page 674] economic terms to warrant the Congressional and other attacks on the Chilean regime which would take place. Accordingly, the Chileans do not wish to be included in our next budget cycle for bilateral assistance.

2. The FonMin said the Secretary had promised to think about the matter. I said that we might be getting some instructions from Washington in response to his discussion of this subject with the Secretary and Finance Minister Cauas’ similar statement to Secretary Simon.

3. Turning to the UNHRC Working Group report, Carvajal said he had raised with the Secretary the possibility that the UNGA might recommend economic sanctions against Chile. Carvajal said the Secretary had assured him we would “oppose, or at least not support” any recommendations for economic sanctions.

4. Comment: Carvajal’s understanding of the discussion squares generally with reftel.

Popper

  1. Summary: Noting that requests for aid prompted congressional and other attacks on the Chilean Government, Carvajal told Popper that Chile would not seek further bilateral assistance from the United States.

    Source: National Archives, RG 59, Central Foreign Policy File, D760389–0704. Secret; Exdis. In a September 21 meeting with Simon and Parsky, Cauas indicated that the Chilean Government was “planning to tell U.S. not to proceed with aid to Chile”; the Chilean Finance Minister explained that “after much deliberation GOC has decided that given small amount of aid involved and given stress every time aid to Chile is brought up, it was not worth it.” (Telegram 252555 to Santiago, October 12; ibid., D760383–0798) In telegram 252354 to Santiago, October 12, the Department reported on an October 7 meeting between Kissinger and Carvajal, in which the Chilean Foreign Minister stated that “the GOC believes it would be better to eliminate all bilateral economic assistance next year.” (Ibid., D760382–0941)

    ↩