825.506/5: Telegram
The Ambassador in Chile (Collier) to the Secretary of State
[Received 11:15 p.m.]
64. Your No. 19, May 5, 10 a.m. Just prior to its receipt I had made informal representations to Minister of Foreign Affairs as to proposed insurance law, and have subsequently conversed with him. He says my representations will receive serious consideration but have been sent by him to the Minister of the Treasury whose project this is. Its provisions are correctly stated in your cable. As yet it cannot be said to have had indorsement of Cabinet although probably reflecting the avowed policy of this administration to promote national interests in every way possible. German and British Ministers who have made rather vigorous protest owing to their large interests, believe project will be adopted and this is not unlikely, although not apt to occur at once, and some substantial amendment may be made. Ministers of Treasury, Interior and Public Works dined with me last night. The first-named told me the matter was not ready for immediate enactment, although he felt that much if not all insurance should be effected in Chilean companies and that French companies had been driving them out of the field by rather unfair methods. I pointed out mutual advantages that would permit French companies to continue business and unfairness, practically amounting to that which might be considered destruction of property rights, if French companies were prohibited from carrying [on] a business which they had established in the past at considerable expense. Except in this respect I do not see anything confiscatory. Chilean Government appears inclined to consider this as simply withdrawal of a license to each business issued without any consideration entitling it to be considered permanent and does not consider it confiscatory. Am acting independently of British and German Ministers but in close touch with them. Minister of Hacienda in submitting his project to commission appointed to consider insurance question said that it was not official and should be considered only as basis for study. I know of no inquiries as to their business yet made from foreign companies but if law is enacted new companies will be subject to inspection by Superintendent of Insurance and required to furnish all pertinent information that may be desired by him.