825.00 Revolutions/170: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received 8:32 p.m.]
150. Referring to my telegram No. 147, July 25, 5 p.m.,36 again I received assurances today from both the Minister for Foreign Affairs and from Dávila concerning their attitude toward respect for international obligations. In a conversation with the latter I mentioned a number of concrete questions. For example, I asked whether it was his intention to grant national treatment in taxation and other similar matters to American business. He replied that it is. He said that he thought the matter of deposits in foreign currency had been satisfactorily settled. He stated that the commission to study the preliminaries of the Constituent Assembly including the electoral law and the draft of the Constitution would have on it representatives of all classes and parties. He said that the final decisions on the Constitution would, however, be by the Assembly, which he hoped would continue thereafter for some time in the capacity of the country’s Congress. He added that he would favor the inclusion in the new Constitution of socialist principles, meaning chiefly the establishment of new state enterprises, and that in his opinion these principles should be applied to lines which would increase the productive capacity of the country for export. I spoke in particular of the concession contracts of the electric and telephone companies and he stated that these would be respected. I also spoke of equality of commercial treatment and mentioned the effort of the French to use recognition as a means for forcing Chile to accept the compensation office scheme. He observed that he did not know what they would do with the French problem but added that of course the United States would receive the same treatment as that accorded to any other country. In general his attitude was frankly reassuring for American interests.
Dávila spoke with confidence concerning the political situation and said that some Cabinet changes would be made soon in the direction of giving representation to some of the groups which have been opposed to him.
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