825.516/126: Telegram

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

67. By decree Junta has converted Central Bank into State Bank. National City Bank, Guaranty Trust and possibly other New York banks hold deposits of Central Bank which constitute part of its gold reserve. Federal Reserve also holds gold in custody for account of Central Bank. The question is raised whether the new State Bank established by decree of the revolutionary government can dispose of this gold. I suggest conference on this point with New York banks and will appreciate having your opinion by cable.