FOREIGN RELATIONS, 1942, VOLUME VI



nearer September 1, as products scheduled or en route were not
affected. Mr. Welles at meetings of the Inter-American Economic
and Financial Advisory Committee repeatedly discussed the situation,
advising of a cut of not more than 40% at the August 6 meeting.
Thus there seems to be no basis for the Ambassador's statement that
Chile heard of the reduction only on September 12.
  Since the supply of tankers for American republics' needs is fixed
(in fact, declining due to sinkings), we can provide more petroleum
to Chile only by taking it away from one of the other republics.
Brazil and Uruguay have already been put on a 40% basis, and they
are the only countries from which tankers could be taken. Any in-
crease in deliveries to the three countries could be done only by re-
moving tankers from other areas-that is, from direct war uses in
Australia, England, et cetera. This I believe the Department would
hesitate to request.
  I agree with Mr. Thornburg that there is no permanent solution to
this problem short of an amelioration in the war situation and the
construction of additional tankers. Nevertheless, as it is of the
greatest political expediency, the effective date of this cut can prob-
ably be made September 15 or October 1. I do not see how it can be
postponed any further.
  In the absence of Mr. Thornburg, EO 68a is attempting to keep cer-
tain of these petroleum matters moving and I should appreciate your
directions as to whether we should ask the Petroleum Pool to make
the effective date September 15 or possibly October 1.
                                               EMILIO G. COLLADO

825.6363/258f: Telegram
The Acting Secretary of State to the Ambassador in Chile (Bowers)

                             WASHINGTON, October 2, 1942-1 p. m.
  1157. Embassy's 1477 of September 12 and 1530 of September 22,
and Department's 1122 of September 25.69 Arrangements have been
made to reschedule oil supplies to Chile on the basis that the reduction
from 66 percent to 40 percent will not become effective until October 1.
According to current reports from pool committee which are con-
firmed by your 1477 Chile will on this basis start October with suffi-
cient gasoline stocks to meet her civilian requirements on a 40 percent
basis for two months which is a higher reserve inventory than the
pool even attempts to maintain elsewhere.
  For obvious reasons it is not desirable to give names, positions and
services of any tankers, and all Government agencies are making ef-

68a Board of Economic Operations of the Department of State.
" Telegrams No. 1530 and No. 1122 not printed.



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