In proportion as this were achieved Chile would be powerfully affected. (a) by apparent helplessness of the Allies pointing, they would argue, to ultimate defeat; (b) by the lure of the Japanese market. If the Chilean Government did not turn towards their enemies a revolution by pro-Axis elements would then have every chance of success. After that might come the establishment of naval and air bases by Axis Powers and smaller prospect for the Allies turning the tables at sea. All this might be helped from the Argentine side, particularly as regards the control of the South.