825.00 Revolutions/89: Telegram

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

87. Referring to my telegram No. 82, June 13, 1 a.m. Rolando Merino, Minister of the Interior, has succeeded Dávila as member of the Junta and Arturo Ruiz has been appointed Minister of Interior. Grove, Minister of National Defense, has assumed direct command of air force.

Referring to my telegram 67, June 9, 11 a.m., Minister of Hacienda issued official statement that the Central Bank will continue to operate as before in accordance with the laws establishing it and to discharge the duties provided for in its organic law. Government assets shall continue entirely independent from those of the State and of the new State bank.

In another official statement Minister of Hacienda recognizes that the dissolution or continuance of Cosach is merely a detail compared with the complexity of the nitrate future of Chile and that the public must refrain from demanding immediate or violent solutions. He adds that a solution cannot be looked for within a short period since any objection or change in the present system demands a detailed study in view of the magnitude of the interests involved. He indicated that in obtaining a solution sacrifices must now be made by those who in the past have only profited from the industry. Independent producers seeking special advantages are warned that any measures involving personal gain will receive no consideration. All negotiations for reorganization or liquidation of Cosach must take place in Chile and in accordance with the policy and interests of the state. Pending a solution of this problem the Government guarantees the continued operation of nitrate plants, and that Cosach must deliver the necessary foreign exchange.