825.85/52: Telegram

The Ambassador in Chile ( Collier ) to the Secretary of State

141. Have made further representations to Minister of Foreign Affairs as to proposed law favoring mercantile marine, calling attention to principles of Geneva convention 192320 (see Trade Information Bulletin 202, stating that even if Chile has not ratified it, it should not be forgotten as expression of its delegate as to principles that should govern, and that the United States in fact adopts this liberal practice wherever reciprocal treatment is not denied to it.

Minister of Hacienda lunched with me today privately. I discussed matter fully with him and I am assured by him that he will give personal reconsideration to bill and redraft it and that provision [Page 534] as to the Panama Canal toll dues will be stricken out. I also believe preferential duties will be eliminated and possibly also in near future payment to ships of peso per ton of nitrate carried by them. He made following interesting statement “Although this payment is made to ships it is intended to benefit producers who unquestionably will decline to send nitrate on Chilean ships unless freight is reduced by this amount paid to ships by the Government.” Practically, this payment therefore is considered by him as bounty to producers. I believe Government eventually will substitute law granting lump sum subvention or payments for maintenance service on designated routes.

  1. Convention and statute on the international regime of maritime ports and protocol of signature, signed at Geneva, Dec. 9, 1923; League of Nations Treaty Series, vol. lviii, p. 285.