825.5151/366: Telegram

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

111. My 110, November 4, 3 p.m.52 The Minister of Hacienda states that his government has now found it impossible under its compensation treaties to subject automobiles from compensation treaty countries to the quota system and, as the great majority of such imports come from the United States, the rate of 35 pesos to the dollar was set as a means of checking the ever-increasing public expenditures for these foreign products. Therefore, I assume that the quota on automobiles will be abandoned by the Government. He admits that some discrimination does exist as regards imports from the United [Page 360] States under the present regulations and has asked for several days in which to consider the question with a view to finding a means of readjusting the situation on a basis of equality for all foreign countries. He has promised to let me have a reply by Monday, the 9th instant.

  1. Not printed.