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

No. 95

Sir: The Department has received your despatch No. 221 of May 13, 1936, reporting on the status of the transfer of American blocked funds, and requesting that the Department authorize you to defer further action concerning these funds until the return of Señor Ross, the Minister of Finance.

The Department concurs in your idea that it may be desirable to postpone a discussion of this matter until you have had an opportunity to go into it and other exchange troubles with the Finance Minister, and therefore authorizes you to refrain from further action in the matter until you deem the occasion more propitious.

When you discuss this matter with the Finance Minister you may bring to his attention the fact that alone of the major trading nations of South America, Chile has failed to provide for systematic liquidation of blocked balances owned by American nationals.

Very truly yours,

For the Secretary of State:
Sumner Welles