825.5151/227: Telegram
The Acting Secretary of State to the Chargé in Chile (Scotten)
78. In view of the considerations set forth in your despatch No. 211, of October 17, the Department agrees that at this time no practical [Page 54] purpose would be served in further pursuing the negotiations with the Chilean Government in the hope of obtaining better terms for American depositors in the Chilean Retirement Fund.
You may inform the American depositors involved of the opportunity which now offers to liquidate their dollar deposits in the Retirement Fund at the rate of 16.65 pesos to the dollar.
The Department, of course, has no authority to accept, in the name of the interests involved, the proposal now made by the Chilean Government. You are, however, authorized, in your discretion, to apprise the Chilean Government that this Government will make no further representations on this subject if the proposed settlement is effected. The Department hopes that you will be able to obtain the small additional concession of interest payments on these deposits for the past 3 years, but leaves to your judgment how far to press this point.