of Grace and Company showing the small percentage (8 per cent in
March) of Chilean exports to the United States carried by vessels of
the Chilean merchant marine.
  Grace and Company is now preparing similar statistics for April.
During that month it is believed that only about 5 per cent of Chilean
exports to the United States were carried by Chilean vessels.
  It is to be noted that there are only three vessels belonging to the
Chilean Line (Companifa Sud Americana de Vapores or C.S.A.V.) but
they are also operating six small Danish vessels taken over last year.
In the opinion of Grace and Company, the practical maximum annual
shipments of cargo by these vessels to the United States would not
exceed 120,000 tons.
  The Embassy requested Grace and Company to make this statistical
study since one argument against rupture of relations with the Axis
which finds wide credence in Chile is that Chilean exports to the United
States would thereafter be subject to attack by Axis vessels, it being
the general belief that a large percentage of such exports is carried
by Chilean vessels.
  As a result of this study articles have now been published in the
Chilean press (see my Despatch No. 3477 of May 30 43) showing that
the so-called protection against submarine attack against Chile's ex-
ports extends only to the 5 to 8 per cent of those exports which are
carried by the Chilean line.
  Respectfully yours,                          CLAUDE G. BowERS


800.6363/710: Telegram
    The Ambassador in Chile (Bowers) to the Secretary of State

                                    SANTIAGO, June 1, 1942-3 p. m.
                                             [Received 4: 18 p. mi.]
  865. In view of the request for a repeat, it is thought that my 852,
May 30, 11 a. m. 44 was not clear to the Department and the following
is clarification of that message.
  Chilean officials were orally informed in accordance with the De-
partment's 556, May 20, 6 p. m. 44 that all production at Talara which
is not now allocated to Chile and Peru is urgently needed for military
operations in the Pacific. The Minister of Commerce 45 now desires
that that statement be submitted in writing and that no objection be
raised to the publication of such communication by the Chilean Gov-
ernment. It is his thought that the publication of a formal statement

  'Not printed; this despatch was dated June 1.
  Not printed.
  4 IPe(lro Alvarez Su~rez.



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