825.85/86

The Assistant Secretary of Commerce ( Brown ) to the Secretary of State

My Dear Mr. Secretary: I have received your communication dated June 7,6 and the accompanying despatch No. 1369 of May 5, from the American Embassy at Santiago, with reference to the regulations issued by the Chilean Government for the purpose of putting into effect the law subsidizing the Chilean merchant marine service through the Panama Canal.

Apparently there is no ground for any fundamental objection to the action of the Chilean Government. The fostering of national shipping by that Government, whether on routes that traverse the Panama Canal or on other routes, is of itself solely a matter of national concern. However, inasmuch as the Panama Canal is open to ships of all nations on terms of equality, it would seem preferable that the regulations issued by the Chilean Government did not take the form of providing or of apparently providing for the repayment of Panama Canal tolls.

Very truly yours,

Walter F. Brown
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