711.252/54: Telegram

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

75. Referring to Department’s telegram No. 30, July 18, 2 p.m., Inter-Departmental Committee on Commercial Treaties has recommended unanimously that the United States be granted unconditional most-favored-nation treatment on all matters covered by effective provisions of French modus vivendi. Action approved by Ministry for Foreign Affairs but final decree by Minister of Finance delayed by changes in government and by denunciation by Chile of the Treaty of 1862 with Germany7 which contains general most-favored-nation guarantee.

Difference with Germany resulted from imposition by Germany of prohibitive tax on nitrate. Much resentment exists here in official quarters against Germany and reprisals are under consideration. Since this subject came up in connection with the discussions of our commercial interests, I expressed informally the earnest hope that trade war might be avoided.

Culbertson
  1. Treaty of friendship, commerce, and navigation between Prussia, in the name of the German Zollverein, and Chile, signed at Santiago, February 1, 1862, British and Foreign State Papers, vol. lxx, p. 849.