825.5151/436
The Ambassador in Chile (Philip) to the Secretary of State
[Received November 8.]
Sir: I have the honor to transmit herewith a copy and translation59 of an announcement made to the press by the Minister of Hacienda on the 28th instant regarding the lavadero gold exchange system. It will be noted that the declaration engages the Government to abandon the system in connection with the importation of automobiles and so-called luxury products, on December 31, 1937.
[Page 437]My official conversations at the Foreign Office confirm this decision, and indicate that the appropriate decrees will be signed as soon as the question of importing 1938 automobile models prior to December 31st has been settled. In this connection I refer to my telegram No. 63 of October 26, 3 p.m., 1937.60 The date of December 31st for the change from the lavadero rate to the export draft rate is quite acceptable to the importers of radios, automobile tires and all luxury goods except automobiles; and I have reason to hope that the latter will receive a fairly equitable adjustment.
It is a matter of profound satisfaction to me to be able to report this development at the present time, in view of numerous personal statements by Chilean officials to the effect that the efforts made here under my direction have been instrumental toward achieving it.
Respectfully yours,