825.5151/217
The Ambassador in Chile (Sevier) to the Secretary of State
[Received August 23.]
Sir: I have the honor to refer to this Embassy’s despatch No. 152 of July 18, 1934, transmitting a copy of the Embassy’s Note No. 118 of July 17, 1934, which requested that the action taken by the Caja de Previsión de Empleados Particulares in converting the retirement funds of American citizens into pesos at a rate of exchange lower than the recognized commercial rate be rescinded pending such time as an agreement on this subject shall have been reached between the two Governments.
In view of the fact that no action was taken by the Foreign Office notwithstanding the oral inquiries which were subsequently made, it [Page 50] was deemed necessary to address a further communication to the Chilean Government requesting that the reply to the Embassy’s note be expedited. A copy of this communication is enclosed.27
On July 31st the Foreign Office replied27 to the Embassy’s Note No. 118 stating that the matter had been referred to the appropriate Ministry. Under date of August 7, 1934, a reply was received27 to the Embassy’s Note No. 123 of July 30th setting forth that the appropriate Ministry had been asked to hasten its decision in the matter and that the Embassy would be informed promptly thereof.
The question has since been taken up orally with the Under Secretary. While he in no way questions the position taken by the Embassy with respect to this problem, he indicated that the Foreign Office was unable to make a suitable reply to our representations until authorized to do so by the Ministry of Hacienda under whose jurisdiction this question falls. It was obvious from a telephone conversation which he had with the Under Secretary for Hacienda, that the latter desires to avoid a decision on the matter at this time. Needless to say, it was pointed out to the Under Secretary that the merits of the case in question are so clear that my Government could not consent to permitting the matter to drag on without a definite decision, and that in view of the fact that the problem was the subject of diplomatic negotiations, we confidently expect that the Chilean Government will rescind the arbitrary action of the Caja in order to permit the resumption of negotiations.
During the visit of Dr. John H. Williams, the question of the repayment of these funds was brought up in a general discussion with the Minister of Hacienda of the pending problems of American interests. In view of many different aspects of the general problem which were discussed at that time it was not possible to enter into a detailed discussion of the Caja. However, it was quite clear that Mr. Ross has some very definite ideas as to how far he is disposed to go in the definitive settlement of this question, and that it would be necessary to devote a special meeting to this question. Accordingly, it is planned to obtain figures on the actual amount of dollars which would be involved in a satisfactory settlement of the repayment of the funds and then to approach Mr. Ross directly. While at the present time Mr. Ross is opposed to a settlement which would be acceptable to this Embassy, it is believed that approaching him on the grounds of the relative insignificance of the deposits, it may be possible to obtain his authorization for settlement in the manner desired.
Respectfully yours,
Counselor of Embassy