Foreign Relations of the United States, Diplomatic Papers, 1933, The American Republics, Volume V

825.6374/1117: Telegram

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

Santiago, March 20, 1933—4 p.m.
[Received 6:15 p.m.]

49. Supplementing my telegram No. 46, March 16, 6 p.m., it is becoming increasingly evident that even more fundamental to the United States Government than the question of the protection of American rights is the destructive effect of the arbitrary action of the Chilean Government upon the very basis of our diplomatic relations. For months we withheld recognition and finally accorded it only after the Chilean Government pledged in writing respect for its international obligations and for the interests of foreigners in accordance with Chilean laws and constitution⁵⁵ (despatch No. 1287, October 26, 1932⁵⁶). The action taken by the present Government is not only a breach of this pledge but is more destructive of the elementary principles which govern the relations of modern states than anything which the Socialist regimes, which we did not recognize, ever proposed. In addition the action of the present Government is a direct violation of its promise to me and to my interested colleagues that no unilateral action would be taken by the Government adverse to foreign interests in the nitrate industry without an effort to find a solution through conference and cooperation.

Attempts to justify the action of the Government on the grounds of political and financial necessity should not be allowed to confuse the considerations of the principles which underlie the protection of American interests; both points deserve consideration but the second must be disposed of before discussing the first. The necessity of the industry is not an argument in favor of the suppression of the 60 pesos charge since a heavy export tax is being reimposed upon the industry. Moreover, the need of a government for revenue arising from failure of taxation or economies does not justify under international law the repudiation of a contract established by law and international practice.

There is the possibility that if by prompt diplomatic action the arbitrary measures of the Government could be modified American interests might be willing to make some concessions to the emergency confronting the Chilean Government.

The Government continues to inspire publicity with misrepresentations in excuse of its action. I fear the delay in making our position clear to the Government and particularly in the press will not only make a just solution of this case more difficult but will give the impression to the Chilean public that we are for some reason reluctant to press the matter. Unless we take a prompt and firm stand we must expect our relations with Chile to become increasingly difficult and unsatisfactory and the extension of the arbitrary action against the nitrate industry to other American interests in Chile.

Culbertson

55. See telegrams No. 218, October 16, 1932, and No. 222, October 21, 1932, from the Ambassador in Chile, Foreign Relations, 1932, vol. v, pp. 501 and 505.
56. Not printed.