The Secretary of State to the Chargé in Chile ( Scott )
Sir: The trade agreements program of the United States contemplates eventual negotiations with each important commercial country with which the basis for an agreement in harmony with the principles and objectives of the program is believed to exist. Trade agreements have been signed with five countries, negotiations are now in progress with thirteen others, and it is planned to institute negotiations with additional countries from time to time in the future. It is expected, therefore, that in due course this Government will have occasion to initiate discussions with the Chilean Government with a view to determining whether there is a basis for the conclusion of a satisfactory agreement with that government and whether that government would be disposed to enter into such negotiations.
Meanwhile it is desirable that a complete understanding should exist in that country of the general objectives and fundamental principles of the commercial policy of the United States. Similarly, it is desirable for this Government to be fully cognizant of any considerations which may govern the commercial policies of Chile, and of the reaction of that Government to the policies of the United States. An exchange of views of a purely informal character, restricted to general considerations of policy rather than the detailed study which would follow in connection with negotiations, may serve a useful purpose at this time, and may facilitate the progress of any negotiations which might subsequently be initiated.
With this in view the Department considers that you may usefully, at your discretion, enter into informal conversation with the Minister of Foreign Affairs, and such other officials as may be deemed appropriate, for the purpose of explaining the commercial policy of this Government, and ascertaining the reaction thereto of the Chilean Government. You may supplement your reports of the substance of these conversations by such additional comment as you believe would be of interest to the Department, with particular reference to the [Page 390] ultimate possibility for the negotiation of a trade agreement between the two countries.
As an aid to you in discussing this general subject, there is enclosed a brief memorandum outlining the salient features of the commercial policy of the United States, as well as a copy of a press release of the Department entitled, “Policy of the United States Concerning the Generalization of Tariff Concessions under Trade Agreements”.1 In referring to these basic principles you may find it appropriate to point out that they are in harmony with the resolution on economic, commercial and tariff policy approved by the Seventh International Conference of American States at Montevideo in December, 1933.2
Should any points arise in your conversations concerning which there may be some doubt, the Department will welcome your inquiries in the premises.
Very truly yours,