825.00/666: Telegram

The Ambassador in Chile (Culbertson) to the Acting Secretary of State

71. New cabinet formed by Francisco Garcesgana, President of Central Bank. Names of other ministers telegraphed by press. Biographic data will be found in the Department for most of them.

[Page 903]

I have just had a talk with Garcesgana. He stated that the maintenance of the stability of the currency is fundamental in his program. He also favors the recognition of constitutional liberties but emphasized that they must be exercised within the limits of law and order. He stated also that he will carry out program of economies initiated by Blanquier but added that a situation could not be changed in 5 days which it had taken 5 years to form.

Contrary to the fears expressed last night men of unsound tendencies about Ibañez have not influenced him to the extent of permitting them to form a cabinet, and the new cabinet may be regarded as still representative of the better influences and standards in Chile. It will have to meet the same problems which led to the fall of the Blanquier Cabinet but it is believed that it will be able to meet them in a more tactful manner and in closer cooperation with the President.

In spite, however, of the more favorable aspects of the situation this morning conditions are still critical and further difficulties may be expected.