611.2531/63: Telegram

The Ambassador in Chile ( Culbertson ) to the Acting Secretary of State

76. Today in a lengthy note replying to my recent communications regarding American frozen credits, the Foreign Office states that if the principal nations at the London Conference agree to the elimination of compensation agreements Chile will gladly obligate itself to take a similar course. Pending the outcome of this Conference the note proposes the postponement of any negotiations looking to a compensation agreement but at the same time expresses a willingness to continue a study of the problem and to receive any proposal which we may wish to offer. The tone of the note invites affirmative action.