825.5151/183: Telegram
The Secretary of State to the Ambassador in Chile (Sevier)
38. In view of the considerations set forth in your despatch No. 77 of March 28, 1934, and of the interpretation thereof supplied by the Chilean Government in your telegram No. 44, May 8, 6 p.m., this Government is disposed to accept the revised memorandum in substance as a basis for an agreement. Accordingly, you may formulate in consultation with the Chilean authorities a draft text of the proposed agreement, which should be submitted to the Department for approval before signature. Since the arrangement is in a sense experimental it should contain a provision for termination on short notice, either 15 or 30 days.
You should at the same time submit a memorandum to the Chilean Government referring to point 3 defining “an equitable agreement for the liquidation of frozen credits” and stating that this Government desires to make clear that in view of the fact that the United States does not discriminate against Chilean commerce it expects that its nationals will receive, as regards the liquidation of their frozen credits in Chile, treatment no less favorable than that granted to the nationals of any other country.
For your information, the purpose of this statement is to put on record this Government’s position regarding the interpretation to be placed upon point 3 of the agreement.