The Chargé in Chile ( Scotten ) to the Secretary of State

No. 224

Sir: I have the honor to refer to the Department’s telegram No. 73, October 15, 12 noon, 1934, in which the Embassy was authorized to settle certain pending accounts for the Chilean 2% Sales Tax and instructed to renew its protest against this tax in accordance with the views set forth in the Department’s Instruction No. 8 of January 10, 1934. In compliance with the Department’s instruction a formal note, a copy of which is enclosed,40 summarizing the Department’s point of view and protesting the payment of this tax was transmitted to the Foreign Office.

As previously stated, the Foreign Office while deploring its inability to exempt the American Government from the payment of this tax and while recognizing that the Chilean Government is being granted [Page 65] this courtesy in the United States, has definitely refused to take any affirmative action in the matter. In view of this situation the Embassy feels that no useful purpose can be served by pressing further at this time. The Department of course may wish to consider whether it shall recommend the annulment on the part of the Treasury Department of the tax exemption privileges now being granted the Chilean Government and its representatives in the United States.

Respectfully yours,

Robert M. Scotten
  1. Not printed.