825.6374/1143: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received 12:55 p.m.]
58. Unfortunately nothing has happened to modify the basic diplomatic situation reported in my last despatches. To keep the Department up to date on recent developments I desire to report that Ross has not committed himself but appears favorably disposed toward the reorganization plan described in enclosure 666 my despatch No. 1428, April 15,67 provided (1) special treatment toward the Chilean Lautaro group is obtained; (2) heavy revenues for the Government are provided. Whelpley is willing to discuss these unreasonable demands and seems to feel that the plan offers a possible way to reorganization which the creditors might accept. The attitude of other interests is as yet undetermined.
There may later develop something in these plans which may afford a basis which will meet the diplomatic problem but at present the Government is yielding nothing on the real point at issue and in my opinion whatever steps the Department has taken to formulate its reply should not be modified nor delayed by any of these recent developments. If, when the time comes to present our reply, there is some hopeful factor which is not now apparent I shall consult my colleagues and telegraph the Department prior to delivering the note.