FOREIGN RELATIONS) 1942, VOLUME VI



  I concluded by saying that, as the Ambassador well knew, the only
forces which the United States had in Peru were a couple of hundred
men sent as contractors to man the batteries which had been turned
over to Peru at the same time as the other four batteries to Chile. I
made it clear that of course we could not publicly discuss military
arrangements of this character under present conditions, but I did feel
that if rumors of the kind I had mentioned were allowed to continue
unchecked, suspicions might perhaps be sown in the minds of the
less-educated part of the peoples of the two neighboring countries
which might result in harm under present conditions.
                                              S [UMNER] W [ELLES]


740.0011 European War 1939/21968: Telegram
     The Ambassador in Chile (Bowers) to the Secretary of State
                                     SANTIAGO, June 2,1942-9 p. m.
                                     [Received June 3-2: 43 a. m.]
  885. For Secretary and Under Secretary.
  1. Am informed that La flora, a leading paper, organ of Radical
Party, will come out this week forcefully for the breaking of relations
and that probably on Thursday Schnake 35 will issue a powerful decla-
ration for breaking relations.
  2. Graham 36 who sees Ministers of Finance and Commerce 87 in con-
nection with Metals Reserve matters 38 was asked by these two and in
behalf of the Minister of Fomento, Schnake and Minister of In-
terior,39 to say to me that they favor breaking relations and are
willing to use the sinking of the Chilean ship as the reason and they
claim they would like, for the purpose of bringing in that part of
public opinion which while pro-American doubts the wisdom of break-
ing relations, to have an agreement in principle on the following:
(1) they would like an increase in copper price, a reasonable increase,
and a reasonable guarantee from Santiago for a minimum fixed ton-
nage and minimum fixed price for a reasonable period after the war;
(2) a reasonable increase in the price of Metals Reserve purchases as in
the case of tin in Bolivia, and a reasonable assurance of the continu-
ance of this Metals Reserve market for a reasonable period after the
war; (3) a reasonable increase in the price of nitrate and iodine and
guarantees regarding the market and price for a reasonable period
after the war emergency; (4) reasonable guarantees to the effect that
synthetic ammonia plants now being erected under the defense pro-
  35 Oscar Schnake, Chilean Minister of Public Works and Improvement.
  Horace R. Graham, representative of the Metals Reserve Company.
  3 Benjamin Matte and Pedro Alvarez Sudrez, respectively.
  38 For negotiations concerning the acquisition of strategic materials by
the
United States from Chile, see pp. 47 ff.
  9 Rafil Morales Beltrami.



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