825.506/14: Telegram
The Ambassador in Chile (Collier) to the Secretary of State
[Received 12:55 p.m.]
135. Insurance bill as amended is considered by local representatives of American fire companies already having agencies here as likely to result in big increase in business because it will prevent entrance of new foreign companies unless they nationalize and because it requires Chilean companies to effectuate all insurance among themselves or through Government caja while requiring foreign companies to reinsure in caja only 20 percent. However many object even to this in principle, unwilling to cooperate in any way with Government in [Page 547] insurance business and on this ground threaten to discontinue agencies but most agents believe prospects of increased business will cause them not to do so. Requirement of increased deposits and heavier taxes even though discriminatory are not considered by agents as offsetting probable big increase in business and profits. National companies in whose interests bill was drafted not now completely satisfied with its provisions and may seek amendments which may possibly be adopted although this is not likely, moreover any further discussion is apt to help established foreign companies.