611.2531/193
The Ambassador in Chile (Philip) to
the Secretary of State
No. 651
Santiago, July 6, 1937.
[Received July
13.]
Sir: With reference to my cable message No. 32
of July 4, 6 p.m.,22 I
have the honor to transmit herewith a copy and translation of the
memorandum from the Ministry for Foreign Affairs, dated the 3d instant,
therein cited.
[Page 391]
I assume that this memorandum has been prepared largely as a result of my
inquiries as to whether a response to the Department’s suggestions of
June 7th would be forthcoming.
The absence from the text of the memorandum of specific comment upon the
points raised by the Department, I attribute more to unpreparedness here
and to the desire to await the primary outcome of Señor Desiderio
García’s conversations than to diplomatic subterfuge of any kind.
In my experience, the Chilean Foreign Office has been considerably
handicapped in its economic and commercial policies by the authoritative
and independent activities of the Ministry of Hacienda under the
direction of Señor Ross. In the main I have been impressed by the
apparent desire on the part of the Foreign Office to foster Chilean
relations with the United States.
As I have reported previously, the actual situation shows very great
improvement over that which existed a year ago and I am of the opinion
that the attitude of the Foreign Office has been a contributary feature
in this improvement.
Our main difficulties at this time result from Chile’s exchange control
and compensation treaties policy. Should it be possible to bring about
an adjustment of the former which would eliminate all discrimination
against imports from the United States, I think our position would be as
satisfactory as conditions here permit.
Yours respectfully,
[Enclosure—Translation]
The Chilean Ministry for
Foreign Affairs to the American
Embassy
Memorandum
The Ministry of Foreign Affairs and Commerce has received the
memorandum of the Embassy of the United States dated June 9 last,
referring to the visit to be made in Washington by some members of
the Chilean Commercial Mission, sent to Japan, the purpose of which
is to cooperate with the Chilean Embassy in the negotiation of a
Commercial Convention with the United States, and adding that it
(the Embassy) has received instructions from its Government to state
that it will be pleased to study the possibilities of a reciprocal
agreement which it is presumed will be of the nature of those now
negotiated by the United States with 15 countries and which include
general provisions based on the “most-favored-nation” clause and
list of tariff reductions and commitments. It adds that the
Government of the United States would be pleased to be informed of
that which the Government of Chile expects on the part of the United
States, and particularly what program the Government of Chile
contemplates with
[Page 392]
regard
to the equality of application of the measures of control of
commerce and exchange to American commerce. The memorandum concludes
by adding that the Government of the United States presumes that any
agreement would be in harmony with the pertinent resolutions of the
International Conference for the Maintenance of Peace of Buenos
Aires and Resolution No. 5 of the Seventh International Congress of
the American States at Montevideo.
In reply this Ministry is pleased to state that it has instructed Sr.
Desiderio García, Sub-Secretary of Commerce, to stop in Washington
and initiate conversations with representatives of the Government of
the United States which will tend to establish the general lines on
which a Commercial Convention which will definitely regulate
reciprocal interchange can be arranged. It is the intention of the
Government of Chile, precisely, to consider in the studies to be
made the ideas referred to in the Memorandum of the Embassy of the
United States, that is, the “most-favored-nation” clause and list of
concessions annexed and also, without doubt, the conditions for the
control of commerce and exchange. Further, the Government of Chile
finds inspiration for its policy in this regard in the resolutions
of the International Congresses to which the Embassy has made
reference.
The Government of Chile hopes that from the conferences and meetings
held with its Ambassador in Washington, on the occasion of the visit
of the Sub-Secretary of Commerce, and with that official, there can
be reached an agreement on general lines which satisfies the mutual
desire of both Governments to strengthen and facilitate reciprocal
interchange—an agreement which, having its basic points fixed as far
as possible in Washington, would be concluded upon the return of the
Sub-Secretary of Commerce by subsequent negotiations to determine
its specific terms and the form in which it would be drafted.
