810.5151 Williams Mission/18

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

No. 52

Sir: The Department has given much thought to the exchange negotiations with the Chilean Government, which are now pending. It has come to the conclusion that in connection therewith, as well as to study the exchange situation in Brazil14 and Argentina,15 it would be well to have an expert in international exchange matters visit the three countries concerned in order to discuss the problems with our missions and the Governments in those countries.

Accordingly, as you have already been informed telegraphically,16 Mr. John H. Williams, Economist of the Federal Reserve Bank of New York, has been released by arrangement with the Federal Reserve authorities, and in company with Mr. Donald R. Heath of the Division of Latin American Affairs of the Department, departed on June 30, last, for Rio de Janeiro on the Western Prince.

The present tentative schedule of Messrs. Williams and Heath, subject to possible change through substituting flying for steamship or rail, is as follows:

  • Leave New York June 30, Western Prince.
  • Arrive Rio de Janeiro July 13.
  • Depart from Rio de Janeiro July 28.
  • Arrive Buenos Aires July 31.
  • Depart from Buenos Aires August 5.
  • Arrive Santiago August 5 or 6.
  • Depart from Valparaiso August 10, on the Santa Maria of the Grace Line.
  • Arrive New York August 28.

The pertinent portions of Mr. Williams’ instructions are as follows:

“In each of these (designated) countries the American diplomatic and commercial missions will be instructed to assist you in obtaining [Page 32] the fullest possible understanding of all aspects of the exchange control situation, and to put you in touch with the local government authorities who are concerned in this matter. You in turn are instructed upon your arrival in each of these countries to put yourself at the disposition of the head of the mission for the purpose of assisting him in the consideration of the exchange control situations with which he has been dealing and for the purpose also of working out with him the major lines of policy immediately to be pursued by this Government. You will find that these missions have given very considerable thought to the subject and have kept themselves closely advised.”

Messrs. Williams and Heath are fully informed of the course of developments in Chile in connection with the negotiations relative to the exchange problem in that country. The Department trusts that the despatch of this mission will indicate to the Chilean authorities the importance which this Government attaches to the exchange problem, which is an important factor in the trade relationship between it and Chile. The Department will await with interest the receipt of your and Mr. Williams’ reports and recommendations in connection with this problem.

Very truly yours,

For the Secretary of State:
Wilbur J. Carr
  1. See vol. iv, pp. 578 ff.
  2. See ibid., pp. 511 ff.
  3. Telegram No. 50, July 3, 7 p.m., not printed.