sary. Even this will be a very hard blow since consumption is still
far above the 50% level and stocks, particularly motor gasoline and
kerosene, are small. I shall take no action until you have reconsidered
the matter and I receive further instructions.
  Just at this critical juncture with lines closely drawn here, we are
already creating the impression of bringing pressure in the case of
nitrate and copper and it certainly seems unwise to me knowingly
to strike a disastrous blow at Chile's economy that may easily turn
public opinion bitterly against us in the midst of difficult negotiations
that are making progress. I am so positive that I am correct that I
cannot assume the responsibility without again making clear to the
Department the dangerous political reactions that would follow the
disruption of Chilean economy.
                                                           BOWERS

825.6363/253: Telegram
  The Secretary of State to the Amnbassador in Chile (Bowers)

                          WASHINGTON, September 11, 1942-9 p. m.
  1039. Department is impressed with the facts and arguments sum-
marized in Embassy's A-91 of August 25 which analyze Chile's
requirements for oil and is making unremitting efforts to maintain
oil supplies to Chile, as to the other American republics, at a level
which will avoid basic disruption of internal economy. The fact is
that demands on tanker transportation for direct war services leave
this Department as well as other agencies of this Government which
are concerned in maintaining civilian supplies with a limited and
possibly even a further decreasing total tonnage which can be divided
among the republics but which cannot be increased. You should
make clear to the Government of Chile that it is in no sense a lack of
"consideration to the effect upon Chile" on the part of this Govern-
ment, but the nonexistence of sufficient tankers that compels Chile
along with the other oil importing republics to accommodate consump-
tion to the possibilities of supply.
  While it regrets the obvious necessity for this conclusion the
Department feels that the only realistic viewpoint is the one that
recognizes the lack of tankers as a physical fact and it is the opinion
of the Department that nothing can be gained by representing to
Chile that any improvement in the oil supply situation can be ex-
pected in the near future.
                                                             HULL



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CHILE