The Secretary of State to the Ambassador in Chile (Culbertson)
Sir: The Department refers to conversations which you had with various of its officers during your recent period of consultation with the Department in which it was determined: that this Government, for reasons of policy and also because of the lack of appropriate agencies therefor, is not in a position to avail itself of the agreement which the Chilean Government has expressed itself as willing to conclude with the United States similar to the French compensation agreement; and that upon your return to Chile you would endeavor informally to obtain, in lieu of a compensation agreement, more favorable treatment for Americans in the release through the Exchange Control Commission of dollar deposits and foreign exchange for peso deposits belonging to American citizens.
In this connection there is transmitted herewith for your information a copy of despatch No. 1023 of January 3, 1933 from the Embassy at Madrid enclosing a copy of the recent Spanish-Chilean compensation agreement.10 The Department believes that in the course of the conversations which you will have with Chilean officials you will be able to use that provision of this agreement relating to frozen Spanish credits (Article II) with good effect in your endeavor to obtain relief for similar frozen American credits in Chile.
Very truly yours,
- Neither printed.↩