825.6374/1071: Telegram
The Acting Secretary of State to the Chargé in Chile (Norweb)
5. Your 7, January 7, noon. Department understands that the Government liquidators and fiscal directors of Cosach have urged the temporary appointment of a liquidator by the “B” shareholders pending regular appointment by action of “B” shareholders at extraordinary meeting called 30 days after notice. If such temporary liquidator is appointed the “B” shareholders would presumably be in a position to be informed of the “plan of procedure” in liquidating Cosach. Department, however, has no information as to what decision “B” shareholders may have reached on this point. As at present advised Department believes you should not approach the Chilean authorities. Please continue to keep yourself and the Department fully informed of developments.
[Page 158]Department has discussed the general question of its attitude toward the action of the Chilean Government in dissolving Cosach with Ambassador Culbertson, who leaves here tonight en route to Miami and thence by air to Chile. The Department’s instructions for the Ambassador, which please bring to his attention immediately on arrival, are as follows:
“Regarding recent developments affecting Cosach, we are of course confident that the Chilean authorities will take no action unfair to American interests. You may express this informally to the Chilean authorities if you think it advisable. If it becomes a question, in your judgment, of the advisability of your discussing particular aspects of any proposed liquidation or reorganization, please cable your recommendations.”