825.01/129: Telegram
The Secretary of State to the Ambassador in Chile (Culbertson)
82. Your 209, undated. We are inclined to doubt the wisdom of appearing to tie up favorable action by Chile on bank deposits and the re-export question with possible American cooperation in wheat and Cosach. Would not the implication be that if Chile gives favorable action we will then do something about the wheat and Cosach matters? As a matter of fact, it is not at all certain that this Government can assist in wheat sales to Chile, and of course it is clear that this Government cannot do anything at all to bring about further financing of Cosach. Under these circumstances we feel it advisable not to talk with Edwards on the lines suggested.
As regards recognition, the question of stability of the present regime is important. We shall await despatches and cable mentioned in your No. 209 and further reports from you on this particular point.