825.516/131: Telegram

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

75. Referring to my telegram No. 68 [74],10 transmitting message of [to] National City Bank, I suggest that this message be delivered as soon as possible. Two features of the situation should be noted, first, the importance of a common policy among British and American banks; second, that one of the facts which must be considered in making the decision not to pay drawings by the Central Bank now under the control of the revolutionary government is that it may be followed by retaliation against American interests. Perhaps it will be felt that this is a chance which should be taken.

Minister of Finance declared tonight that the decree against foreign currency deposits will be enforced and if resisted measures will be taken similar to those taken against Central Bank, but we will have to await further developments before we can say how seriously this declaration is to be considered. We know at least that the Minister of Finance and others in the Government are irresponsible and capable of measures of violence.

  1. Dated June 10, 11 p.m.; not printed.