The Ambassador in Chile (Philip) to the Secretary of State
[Received 4:21 p.m.]
108. My 105, October 14, 5 p.m., and other correspondence in regard to new Chilean exchange regulations:
Announcement is made in the press of today that the gold rate has now been set at 35 pesos to the dollar. The President of the Exchange Control Commission has confirmed this and states that this rate will be applicable to automobiles, radios, and all other products on the list of non-essential items except that trucks, repair parts for trucks, and truck tires will continue to be allotted exchange at 30 pesos. Please inform Commerce of above.
This arbitrary manipulation of the dollar peso rate would seem to involve a flagrant discrimination against American products as compared with those from compensation treaty countries. I am of the opinion that it should be met by the Department with a firm and decisive protest.