825.5151/211: Telegram

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

61. Your despatch No. 152, July 18, 1934. Your action thoroughly approved. Please keep this matter actively before the Chilean government and request the recision of the arbitrary and unilateral action taken by the Caja, which was contrary not only to the terms of the agreement under which the deposits were made but also to the assurance given by the Minister of Hacienda as well as members of the Senate when law 5107 was passed. You may say that this government hopes that the Chilean Government will make a prompt and generous settlement of this long-standing problem, in view of the humanitarian considerations involved and the relative insignificance [Page 38] of the deposits. Press reports that Williams and Heath have arrived at Santiago. Department desires you to discuss this matter thoroughly with them. It would be glad to have the report on the present financial situation of the Caja, so as to be in a position to judge its ability to satisfy the claims of Americans against it.

Hull