825.506/16: Telegram
The Ambassador in Chile ( Collier ) to the Secretary of State
[Received 7:40 p.m.]
138. Regular session of Congress has terminated. Government contemplates calling special session about October 6th. Insurance bill will then come before Senate. I request Department’s consideration of the fact that the tax on policies negotiated by foreigners with foreign companies and executed in foreign countries affects not only insurance on real estate, that is, buildings, but also insurance on personal property, machinery and other chattels and also insurance against loss of prospective profits caused by interruption of business due to fire. Am informed that one of three great American copper companies carries 12 million dollars against loss of prospective profits, presumably the others carry proportionate insurance. Attorneys for American interests have argued that if such contracts relating to personal property even though used in connection with or derived from real estate situated in Chile can thus be taxed, it would appear that any contract affecting such personal property, as for instance mortgages and assignments, could be taxed. Does this in the Department’s opinion affect its decision that no representation should be made against this feature of the law?