The Ministry of Foreign Affairs, in reference to the final part of the
Memorandum transmitted with the Note Verbale of
the 3rd of
[Page 183]
April, has the
honor to forward to the Embassy of the United States of America a copy
of the resolution adopted unanimously by the Liquidating Commission of
the Nitrate Corporation of Chile under date of the 7th instant.
The Ministry of Foreign Affairs takes advantage of this opportunity to
renew to the Embassy of the United States of America the assurance of
its highest and most distinguished consideration.
[Enclosure—Translation]
Resolution Adopted by the Liquidating Commission
of the Compañía de Salitre de Chile, April 7, 1933
In Santiago, on April 7, 1933, at 3:30 P.M., the Liquidating
Commission of the Nitrate Corporation of Chile resolved itself in
session, at which were present Mr. Jorge Matte Gormaz, appointed by
the President of the Supreme Court of Justice, Mr. Aureliano Burr,
appointed by His Excellency the President of the Republic, Mr.
Horace E. Graham, appointed at the Special Extraordinary Meeting
held on February 10, 1933, the Manager Mr. Alejandro Echegoyen, the
Advisors Messrs. Manuel Antonio Maira and Osvaldo de Castro, Mr.
Joaquín Irarrázaval and the Secretary Mr. Florencio García.
The Meeting was presided by Mr. Jorge Matte Gormaz.
The Minutes of the last meeting were read and approved.
The following was discussed:
1)—Suspension of the Payment of
$60.—per Ton.—
Report was made of letters from the offices in London and New York
transmitting the protests made by the trustees of the bonds of the
Nitrate Corporation of Chile against the suspension of the payment
of the sixty pesos gold per ton assigned for the service of those
bonds.
In this respect and after carefully considering the situation, the
Liquidating Commission unanimously agreed to make the following
declaration:
The instructions issued on March 17th last by the Minister of
Hacienda to the Customhouse authorities not to continue
intervening in the control of the payment of the sixty pesos
gold per ton of nitrate shipped, provided for in Decree No.
2935 of April, 1931, do not affect the rights of the holders
of bonds of the Nitrate Corporation of Chile to demand
before the judicial authorities the fulfillment of their
contraband the compliance with the forms of payment
prescribed in the said contracts.
The Supreme Government has taken no resolution to suspend the
payment of the sixty pesos gold. This suspension is due to a
resolution of the Liquidating Commission of the Nitrate
Corporation of Chile which, under the moratorium provided in
Article 7 of Law No. 5133, has considered that, in view of
the present condition of the industry
[Page 184]
and the financial situation of
the liquidation, it cannot continue to service in gold this
obligation which was contracted prior to the liquidation of
the Corporation.
The said resolution of the Liquidating Commission has not
changed in any manner the rights derived from existing
contracts, nor has it modified the situation of the
interested parties or of the Trustees of the Prior Secured
and Secured bonds vis-à-vis the liquidation and the other
creditors.
As this is the precise meaning of the resolutions of the
Liquidating Commission, it considers it to be its duty to
leave it on record and to acquaint all the interested
parties therewith. The Liquidating Commission trusts that
the creditors, understanding these purposes, will realize
the necessity of beginning immediately the study of a plan
of reconstruction of the nitrate industry and a readjustment
of the finances of the Nitrate Corporation of Chile in
Liquidation which, taking into consideration the present
depressed condition of the market and its possible capacity,
will permit, in the best possible manner, taking care of the
fiscal situation and of the different debit obligations of
the Corporation.
It was further resolved to send this declaration to the Company in
London so that it might be communicated privately to the
Trustees.
The meeting was adjourned at 3:55.
- Jorge Matte
- A. Echegoyen
- A. Burr
- H. R. Graham
- Florencio García
