825.5151/367
The Acting Secretary of State to the Ambassador in Chile (Philip)
Sir: There is enclosed for your information and such comments as you may wish to make a copy of a letter56 addressed to the Department on October 28 last by Mr. Frederick L. Herron, Foreign Manager, Motion Picture Producers and Distributors of America, Incorporated, New York City, in regard to the frozen credits in Chile of American motion picture companies.
The Department desires that at this time you again discuss informally with the Minister for Foreign Affairs, and in your discretion with the Minister of Finance, the matter of the blocked credits in Chile of various American interests and the substantial burden which they are to many nationals of the United States. You are requested to state that it is the understanding of this Government that a large proportion, if not the total amount, of the blocked credits of nationals of countries having compensation and clearing agreements with Chile has now been liquidated, while blocked funds of American interests have been released in a much smaller degree, the amount of these not having been reduced for many months. Reference should be made again to the assurances given to you by the Minister of Finance last January to the effect that American blocked accounts would be released prior to his departure for Europe on leave of absence shortly thereafter, and to the failure of the Chilean Government to act in accordance with these assurances. You may advert [Page 362] to the fact that all of the other principal commercial countries of the Western Hemisphere having exchange arrears have now either entirely liquidated their blocked funds or have provided for their systematic liquidation, and add that it is earnestly hoped by this Government that the blocked credits of American nationals in Chile may be promptly released.
Very truly yours,
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