Office of the Historian

611.2531/20a: Telegram

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

Washington, July 18, 1931—2 p.m.

30. The instructions discussed with you during your visit regarding commercial treaty negotiations with Chile are still under consideration in the Department.3 In the meantime the Modus Vivendi signed with France4 is disturbing us. The Department has learned with surprise that at this time when it is obviously to Chile’s advantage to cooperate with American commercial and financial interests that Chile should discriminate against them. This arrangement distinctly discriminates against American commerce.

As the most expeditious way of meeting the immediate situation you are advised to propose to the Chilean Government at once that an American-Chilean Modus Vivendi securing complete most favored nation treatment for American commerce be arranged. This, we understand, would require only an exchange of notes. A suitable model, we believe, is the modus vivendi concluded by you with Roumania in 1926.5

You are familiar with the fact that the chief Chilean exports are on the American free list.

If necessary within your discretion you may call attention to Section 338 of the American Tariff Act.6

Castle
  1. A draft treaty for a proposed treaty of friendship, commerce and consular rights was transmitted to the Ambassador in Chile in Department’s instruction No. 788, November 2, 1927 (Foreign Relations, 1927, vol. i, p. 524). This draft was subsequently amended by Department’s instructions No. 869, August 7, 1928, and No. 872, August 21, 1928 (neither printed), and became the basis of conversations with the Chilean Government in 1928 and 1929. An outstanding subject of disagreement arose out of Chile’s desire to make exception, in the matter of most-favored-nation treatment, of the other countries of South America, and although this exception was narrowed down to Argentina, Bolivia, and Peru, the Department hesitated to accept it. By telegram No. 92, August 7, 1929, 2 p.m. (not printed), the Ambassador was informed that pending enactment of tariff legislation then under consideration the Department did not desire that he approach Chilean authorities with a view to renewing negotiations. The Ambassador had recently suggested that the negotiations be renewed.↩
  2. Exchange of notes between Chile and France, May 22, 1931, League of Nations Treaty Series, vol. cxxiv, p. 33.↩
  3. Foreign Relations, 1926, vol. ii, p. 898.↩
  4. 46 Stat 704.↩