825.5151/132: Telegram

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

7. Your urgent telegram No. 1, January 5, 6 p.m. The Department is not clear what the scope of the Chilean proposal is and desires further clarification. How would the Chilean proposal affect an importer of American goods who sought foreign exchange to pay for them? What would be the attitude of the Exchange Control Commission toward his request for exchange? Would the exchange be granted to such importers in unlimited amounts and if not upon what principle? Does proposal mean that the Exchange Control Commission will continue arbitrarily to decide what amounts it will grant to American interests? Or does the proposal merely mean free access to the bootleg market, and an opportunity to make private agreements, which is the de facto situation at present? What advantage does the Chilean Government allege would be obtained by private agreements? What is meant by “genuine American interests[?]”