825.6374/1081
The British Embassy to the Department of State
Aide-Mémoire
In connection with the dissolution of Cosach, it seems to have been suggested in Chile that the bankers of England had some knowledge of and approved the measure. In this connection the London bankers have issued the following statement:—
“On November 17th last Señor Ross having expressed wish to meet London bankers was entertained to lunch by Messrs. Rothschild’s. Chilean Ambassador was present. Ross explained that he was glad to have the opportunity of meeting some of the London bankers interested in nitrate affairs in order to state his personal views regarding the future. He felt that a reorganization of Cosach was absolutely necessary and that industry should be carried on in future by two companies, one in Chile concerned solely with production, the other in Europe to look after sales. He explained somewhat vaguely connection which should exist between the two. He said he hoped London bankers would be prepared to continue the financing of the export of nitrate and added that bankers in London who had put their money and their faith in Cosach, had nothing to fear from anything which the new government might do.
“There followed a roving discussion in the course of which it was several times stated emphatically that government would create a serious and difficult position if any attempt were made to dissolve [Page 157] Cosach before some new structure had been prepared in its place. Discussion was finally closed by those present taking note of various statements made by Señor Ross and their spokesman stating that as to future financing of industry London bankers were always ready to do good business and if nitrate business was good they would doubtless be prepared to go on with it.”
The discussion referred to in the above statement took place in French and through an interpreter, and translations may tend to misunderstandings. The bankers however affirm quite categorically that nothing was said to Señor Ross or any person present which could not equally well have been said in the presence of Mr. Whelpley or any other United States citizen.