611.2531/83: Telegram

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

108. Department’s telegram No. 51, November 29, noon. I presented yesterday a formal note containing a copy of the Department’s draft agreement. I set forth briefly our viewpoint concerning the discrimination which our commerce has been suffering and added that we fully expect that the Chilean Government will give it prompt consideration. The Under Secretary read the note and the draft agreement and assured me that today he would discuss the question carefully with Ross, Acting Minister for Foreign Affairs, and would arrange an interview early part of next week. I have no indication what satisfaction the Chilean Government will offer us but I feel it has been impressed with the earnestness of our intention to obtain fair treatment for our commerce. Copy of my note air mail today.

Last paragraph of your telegram is not quite clear. However, for the Department’s information the proceeds of nitrate sales in the United States now remain there for canceling previous bank advances. Unblocked portions in other countries available for needs of the industry; frozen credit proportion returned at treaty rate and new business proportion at export draft rate. Disposition of proceeds of copper sales in practice governed by special and extra legal arrangements.