825.506/4: Telegram
The Secretary of State to the Ambassador in Chile (Collier)
19. Home Insurance Company of New York calls Department’s attention to a cablegram from its agent in Chile reading in part as follows:
“Minister Finance has published his intentions to nationalize insurance as soon as possible. Principal points are as follows. Government will form a reinsurance company. Foreign companies will be eliminated. Native companies must reinsure their surplusses with Government company. When law is passed companies will be considered national only if two-thirds of capital belongs to Chileans.”
It is stated that British and German companies doing business in Chile have asked for diplomatic intervention. Home Insurance Company desires this Government to protest against measure as being confiscatory. Please inquire of Foreign Office concerning proposed measure and report fully by telegraph, especially with regard to extent to which it appears to be confiscatory. Department has requested [Page 542] company to furnish information concerning nature and extent of its business and property interests in Chile.