forts to avoid broadcasting such information, but local committee will
have sufficient information currently to enable Chilean authorities to
plan regulatory measures.
  You should tell the Chilean authorities that the announcement of
the 40 percent supply program was not intended to be regarded as a
decision on the part of this Government but instead as the disclosure
by this Government of a factual situation which the Chilean Govern-
ment would do well to prepare to meet. The fact that Chile disre-
garded this advice two months ago has now required that this Govern-
ment deprive war important services of oil and send tankers to Chile
instead. This course cannot be continued. On the other hand you
should assure the Chilean Government that whenever improved situ-
ation or special circumstances make it possible additional supplies
will be put in to enable the reserve inventory to be built up. Depart-
ment wishes you to know that despite statements that have been made
it has as yet seen no reason for believing that the burden of reduced
oil supplies in Chile is as serious as in a number of other republics
which do not have either substitute fuels or war industries which
receive full supply.
                                                          WELLES

825.6363/266: Telegram
   The Ambassador in Chile (Bowers) to the Secretary of State

                                 SANTIAGO, October 6,1942-9 p. m.
                                 [Received October 7-12: 27 a. m.]
  1643. Chilean Government has just chartered Argentine tanker
Juncal believed to be en route to the United States with vegetable oil
for Commodity Credit Corporation, for single trip from West Coast
United States to Chile with 10 million liters gasoline. This gasoline
is ostensibly to increase reserves of Ministry for Defense but when
asked whether it would be counted as delivery by pool answer was
evasive and there will be nothing to prevent its use for civilian
consumption.
  Embassy is also informed that Ministry of Defense has contracted
to buy outside of the pool 10,000 barrels of aviation gasoline in steel
drums to be delivered within 90 days probably at San Pedro.
  Both transactions will result in considerably higher cost than pool
deliveries and Embassy considers them extremely questionable. Local
Standard subsidiary has informed headquarters and recommended
that the Department investigate immediately.
                                                          BOWERS



115



CHILE