825.00 Revolutions/171: Telegram
The Secretary of State to the Ambassador in Chile (Culbertson)
55. Your 147, July 25, 5 p.m.,37 and July 26, 6 p.m. The assurances so far given to you are of course only oral. Unless you have reason to believe that these assurances will be confirmed to you in writing within the next day or so, please address the following personal letter to the Minister for Foreign Affairs:
“With reference to the conversations which I have had recently with you, Señor Dávila, and Señor (here insert name of Minister of Finance), I desire to set forth my understanding of the position taken by the present Chilean authorities.
It is my understanding that the communication which I received from you on July 16th last38 means that deposits in foreign currency of American citizens and the foreign currency deposits for which American banks are responsible will not be confiscated nor will they be forcibly converted into Chilean currency. It is my understanding that the decree providing for the taking over of such foreign currency deposits will be rescinded but that pending such action the foreign currency deposits above alluded to will in no wise be affected and the decree in question will not be made applicable to them.
Referring to your communication to me of July 14th in which you state that the present Administration in Chile will respect its international obligations, it is my understanding from our subsequent conversations that by this you mean respect of international obligations in the broadest sense and that the present administration in Chile will not repudiate its bonded indebtedness owed to private American investors; that there will be no discrimination in the protection which will be accorded to American nationals and their property, nor will there be any discrimination with regard to their property and trade with respect to any third country, and that they will be accorded a degree of protection at least as high as that given to the nationals of Chile and that this standard of protection will not fall below the minimum standard set by international law and practice. It is my understanding that equality of commercial rights, taxation, and the treatment of American enterprises in Chile was included by you in the above-mentioned assurances. In the course of our conversations referred to above, in addition to the assurances which you gave regarding all American enterprises in general in Chile, mention was made of the specific concession contracts of the American Electric Light and Power and Telephone Companies as well as of the American interests involved in the so-called Cosach, and it is my understanding that you assured me that those concessions and interests are included in your assurances regarding the protection to be afforded American interests in general.
[Page 472]In order that I may advise my Government with great accuracy regarding our recent conversations, I desire to ask you to confirm my understanding of your position as set forth above or else to correct it if I have misstated it in any wise.”
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