825.5151/199: Telegram
The Ambassador in Chile ( Sevier ) to the Secretary of State
[Received 5:30 p.m.]
46. Department’s telegram No. 38, May 22, 7 p.m. The Foreign Office has agreed to work out with the Embassy the draft for a suitable [Page 30] exchange of notes to give effect to a temporary agreement based on this Embassy’s memorandum of March 27.13
With reference to the memorandum proposed in paragraph 2 the Foreign Office desires that it be made clear therein that the reference to most-favored-nation treatment in the liquidation of American frozen credits applies only to agreements reached outside of compensation treaties.
The Embassy assumes this is also the Department’s intention since all our negotiations have been predicated on this basis but to avoid possible misunderstanding please confirm by telegram.