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

No. 251

Sir: Adverting to my cable message No. 57 of June 18, 3 p.m., 1936, and to my despatch No. 247 of June 20, 1936,46 relative to the status of motor vehicles and radios ordered prior to the receipt of notice of the prohibition by the Chilean Government against their importation, I have the honor to report that the situation remains without material change.

Importers of these products are receiving permits to clear them from the Chilean customs but, with few exceptions, exchange facilities for the fulfillment of relative contracts in the United States are being systematically refused.

I have as yet obtained no reaction to my note of the 19th instant47 to the Minister for Foreign Affairs, although I have reason to believe [Page 355] that the question is under serious consideration by the Chilean Government.

As the matter stands, the immediate situation of the Chilean importer of these products has improved. Indeed, I learn that permits of importation are even being given for consignments of automobiles and radios which were shipped from the United States subsequent to the receipt of notice of their prohibition. Therefore the question of first importance continues to be that of the liquidation of these accounts in the United States.

The all important necessity is dollar exchange. This problem is one of far reaching importance to American exporters to Chile.

The Chilean Government refuses to grant this for the implied reason that there is none available. The Embassy’s study of the highly involved exchange situation is not yet completed.

I shall hope that additional information will be available for the Department in the near future.

Respectfully yours,

Hoffman Philip
  1. Despatch not printed.
  2. Not printed.