Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Chile Felix Nieto, William Krieg, and Mr. Barall

5518 s/s DEPARTMENT OF STATE M.A. Memorandum of Conversation 789 48 PRSTRIOTED DATE: February 9, 1951 SUBJECT: ARCHIVES AND *NATIONAL RECORDS SERVICE" of PARTICIPANTS: The Secretary of State : Chilean Ambassador, Felix NIETO OSA - Mr. Krieg OSA - Mr. Barall COPIES TO: American Embassy, Santiago s/s, ARA, ARA Board, DRA U. S, GOVERNMENT PRINTING OFFICE 16-61120-1 After an exchange of greetings, the Chilean Ambassador presented me with a copy of a book of photographs prepared by the International Business Machines Corporation, covering the visit of President Gabriel Gonzalez Videla to the United States in 1950. Referring to a recent conversation with Secretary of Commerce Sawyer in which the latter expressed an optimistic outlook on the international situation, the Ambassador asked for my point of view. I replied I was unable to share fully Secretary Sawyer's optimism. I said I felt the situation would improve as the United States increased its military strength. The military situation in Korea appears somewhat better now, but the Chinese are in a position to intervene in Indo-China if they so desire and thus eause an extension of the conflict, I emphasized that the preservation of peace remains our primary objective at all times, but one can not yet say that the clouds have broken, The Ambassador explained that Mr. Sawyer's optimistic remarks referred to the international supply situation and he then expressed the hope that the State Department was taking action to meet Latin America's needs for essential raw materials and J827 LEB It GN JS 32 manufactured DECLASSIFIED Ot 2IVIE E.O. 10501 LHE RECUEIVBA CEAICE