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: MBASSY STATE OF AMERIÇA Santiago, Chile May 18, 1949 Dear Mr. President: While your statement at the press conference, following the statement of Mr. Acheson, to the effect that the Spain of Franco, frankly fascistic, has not qualified for an association of free nations was not intended primarily for South America, you may be interested to know that this statement has given the greatest encouragement to the liberal and democratic elements on this continent they have had for a long time. These liberal and democratic elements in Chile, a stoutly democratic country, have been confused by the tone of press propaganda. The impression has been given even by press agencies of the United States re- porting from Madrid that in Spain today the people are happy, prosperous and free. The action of a great American bank in giving a substantial loan to Franco to maintain his fascistic regime has had an unfortunate interpretation here. Therefore your statement and Acheson's have had a wholesome effect and given encouragement to our kind of people here. It is not at all surprising that the Governments of a number of South American countries would have Franco's fascist Spain admitted to all the advantages of the United Nations. These Governments are, with very few exceptions, those imposed by force by anti-democratic or militaristic elements. It is surely significant that the two outstanding Democracies of South America, Chile and Uruguay, are unable to discern the democratic silver lining to the fascist cloud in Spain. In Chile, President González Videla has been embarrassed with the implied threat of reactionary anti-democratic, pro-fascist elements to withdraw from the combination of parties which was formed to present a solid front against the Communist danger. The people and the papers here, whooping it up for Franco Spain, are the people to ARCHIVES AMD MATIONAL The President, RECORDS

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    "ocrText": ": MBASSY\nSTATE OF AMERIÇA\nSantiago, Chile\nMay 18, 1949\nDear Mr. President:\nWhile your statement at the press conference, following\nthe statement of Mr. Acheson, to the effect that the Spain of\nFranco, frankly fascistic, has not qualified for an association\nof free nations was not intended primarily for South America,\nyou may be interested to know that this statement has given the\ngreatest encouragement to the liberal and democratic elements on\nthis continent they have had for a long time. These liberal and\ndemocratic elements in Chile, a stoutly democratic country, have\nbeen confused by the tone of press propaganda. The impression\nhas been given even by press agencies of the United States re-\nporting from Madrid that in Spain today the people are happy,\nprosperous and free. The action of a great American bank in\ngiving a substantial loan to Franco to maintain his fascistic\nregime has had an unfortunate interpretation here. Therefore\nyour statement and Acheson's have had a wholesome effect and\ngiven encouragement to our kind of people here.\nIt is not at all surprising that the Governments of a\nnumber of South American countries would have Franco's fascist\nSpain admitted to all the advantages of the United Nations.\nThese Governments are, with very few exceptions, those imposed\nby force by anti-democratic or militaristic elements. It is\nsurely significant that the two outstanding Democracies of South\nAmerica, Chile and Uruguay, are unable to discern the democratic\nsilver lining to the fascist cloud in Spain.\nIn Chile, President González Videla has been embarrassed\nwith the implied threat of reactionary anti-democratic, pro-fascist\nelements to withdraw from the combination of parties which was\nformed to present a solid front against the Communist danger. The\npeople and the papers here, whooping it up for Franco Spain, are the\npeople\nto ARCHIVES AMD\nMATIONAL\nThe President,\nRECORDS"
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