In the final conversation which he had had with the President,
 the President told the Ambassador specifically to state to the United
 States Government that Chile would be prepared to break diplomatic
 relations with the Axis powers should the United States Government
 deem this desirable. President Rios did not wish to give for a moment
 the semblance of negotiating a deal with the United States, but he
 wished to make it clear nevertheless that unless Chile could obtain
 military and naval materiel which would make it possible for Chile
 to undertake at least a minimum of self-defense, public opinion in
 Chile, on account of the panic which had been created by Axis prop-
 aganda, would not support his Government in a breaking of relations
 with the Axis countries. President Rios also wanted to receive some
 assurances that in the event that, through Japanese or German attacks,
 the Chilean mining industry was put out of commission and 100,000
 Chilean miners thrown out of work, the Government of the United
 States would do what was necessary to see Chile through the economic
 crisis which such unemployment would create.
   These two points appeared to be the only points upon which the
 President of Chile desired assurances. I told the Ambassador that
 it seemed to me that, in view of the very friendly and frank state-
 ments made to this Government, through him, by the President of
 Chile, the first immediate need would be to ascertain from the com-
 munications already made to us by the Chilean Government what
 the minimum defense requirements of Chile might be; that if it then
 appeared that these requirements were within limits which this coun-
 try could meet, a tentative agreement be worked out between the
 Ambassador and myself stipulating the amounts and times of deliv-
 eries of military and naval equipment to be furnished Chile under a
 Lend-Lease agreement which would then be signed. I said that once
 such an agreement had tentatively been agreed upon, we would then
 be in a position to assure Chile that if Chile severed relations with
 the Axis powers this Government would then be prepared to sign a
 Lend-Lease agreement with Chile and deliver materiel to Chile under
 the schedules carried in such agreement. The Ambassador stated that
 this would be most satisfactory to his Government.

 740.0011 European War 1939/24454: Telegram
 The Secretary of State to the Ambassador in Chile (Bower8)

                               WASHINGTON, August 8, 1942-noon.
  883. Refer to letter of July 30, 1942 to the Ambassador from the
Under Secretary.46
  The President had a long conversation with Ambassador Michels
on August 5. In this conversation the Ambassador communicated
" Not printed.



CHILE



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