825.00 Revolutions/158: Telegram
The Secretary of State to the Ambassador in Chile (Culbertson)
49. Your 132, July 14, 2 p.m. The most important element in the situation as regards recognition is the stability of the present regime. The Department fully concurs with your statement that it is impossible to make any prophecies concerning the political stability of the present regime and therefore is not disposed to give recognition at this time but to await developments. Accordingly no reply should be made to the note of Minister for Foreign Affairs.
You are correct in your understanding that the policy of this Government is not to associate recognition with the particular type of government or political institution which the people may decide to adopt. In this connection there is a two-fold criterion: First, that there should be no discrimination in the protection which must be accorded to the nationals of other countries and their property, to both of which must be accorded a degree of protection at least as high as that given to the natives of the country, and secondly, that this [Page 464] standard of protection must not fall below the minimum standard set by international law and practice.
Department feels that it should await also the receipt by you of the written communication the Foreign Office says it will shortly send you stating that American deposits in foreign currency in Chilean banks will not be molested as provided for in the decree laws referred to in your despatch 1187 of June 29.29 It would also be helpful if the Chilean Government would give you similar assurances regarding the foreign debt, equality of commercial rights, taxation, and treatment of American enterprises including the Cosach. In this connection can you throw any light on the statement in the note you quote that the present regime “has already taken the measures which will permit it to consult the will of the people on the first Sunday of October.” Does this consultation of the will of the people refer to the election of officials or the adoption of a new constitution and if it refers to the latter is the present regime in a position to give assurances prior to the adoption of a so-called socialist constitution regarding the treatment of foreign interests and respect for international obligations?
In general the fact that the revolution in Chile is ostensibly a socialist revolution and inasmuch as it has already proposed certain measures which, although they have not as yet been enforced against our nationals’ property, indicate an intention of the new Government to resort to a standard radically departing from that usually deemed adequate protection of foreign property under international usage, makes it necessary that we should exercise unusual care before recognizing this regime.
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