825.5151/144a: Telegram

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

18. Representatives of Baldwin Locomotive Works called at the Department this afternoon and stated that despite provision of recently concluded German-Chilean compensation treaty stipulating the use of export rate of exchange for new business, Chilean Government may possibly guarantee a lower rate of exchange for the purchase of German locomotives even at a higher price than that offered by the Baldwin people in order to promote nitrate sales to Germany.

Please confer at once with Wessel Duval, representatives of Baldwin, and if in your judgment discrimination seems probable, discuss this matter informally with appropriate Chilean officials and ask that there be no discrimination against American interests which desire to compete on even terms with other foreigners in Chile.