611.2531/654

Memorandum of Conversation, by Mr. H. Gerald Smith of the Division of Trade Agreements

Señor Gazitúa called to leave at the Department a communication which had been received from Santiago setting forth the position of his Government with respect to the general provisions of the proposed trade agreement. I went over with Señor Gazitúa the various articles in which his Government desired to make changes in the draft provisions proposed previously by the United States. It was apparent that considerable study would be necessary on the Chilean counterproposals, as in several cases proposed articles had been eliminated or major changes had been made which probably would not be acceptable to this Government. It was therefore agreed that we would make a detailed study, as soon as possible, of the counterproposals of the Chilean Government.

It was explained to Señor Gazitúa that Messrs. Fowler and Allen, who had been in Buenos Aires assisting in the negotiations there, were returning to the United States by way of Chile and would spend several days in Santiago. It was suggested that it would be desirable to take advantage of their stay in Santiago to discuss the general provisions with the Chilean officials and Señor Gazitúa agreed to this procedure.