825.506/22
The Ambassador in Chile (Collier) to the Secretary of State
[Received December 21.]
Sir: Referring to the Embassy’s telegram No. 179 of November 17, 5 p.m., reporting the modifications made in Article 46 of the redrafted Insurance Bill, I have the honor to state that on the 23 instant the Chamber of Deputies approved the bill in question with all of the modifications made by the Senate with the exception of Article 36 which does not vitally affect foreign interests but refers to the question of non-taxation of local institutions of a benevolent or charitable character.
The bill as presented at the opening of the special session of Congress contained several new changes beneficial to Foreign Companies and the subsequent amendments,—particularly in Article 46 which now allows local branches of foreign insurance companies to place insurance abroad when the insurance has been turned down by the local companies, without being subject to a special tax,—is considered by Mr. Beausire as eliminating the most harmful feature of the bill as far as foreign companies are concerned. However, the cutting down of the required capitalization of the local companies to only $500,000 and of the foreign companies to $1,000,000 is somewhat regretted by foreign interests as this it is believed will permit [Page 549] the establishment of certain local companies which would not have been able to have entered the field if the original amount of $1,000,000 capitalization for local companies and $2,000,000 for foreign companies had remained in force.
In conformity with the Department’s instructions I have refrained from formal protests, but I have repeatedly made informal representations as to the injury to the general business interests of the two countries likely to result from the bill as originally drafted.
I have [etc.]