611.2531/171

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

No. 477

Sir: Subsequent to my cable message No. 6 of January 22, 3 p.m., relative to an exchange of notes with the Chilean Government for [Page 380] the purpose of extending the reciprocal unconditional most favored nation treatment now provided for by our agreement with Chile of September 28, 1931, I had a short interview with the Minister of Foreign Affairs.

I took advantage of this occasion to mention to Don Miguel Cruchaga that from both Señor Benjamín Cohen7 and Señor Alberto Serrano of the Foreign Office I had received intimations that the Chilean Ambassador in Washington had cabled his Government that instructions had been sent me by the Department to propose an exchange of notes to provide for reciprocal favored nation treatment. I said that Señor Cohen had stated moreover that the text of the agreement in question was to be so worded that it would remain in force until the ratification of a commercial treaty between the United States and Chile. I remarked that I did not understand the significance of these statements.

For the Minister’s information I informed him that I was empowered to propose an exchange of notes for the purpose of extending the provisions of our existing commercial agreement should this become necessary owing to the ratification by the French Government of the Franco-Chilean Commercial Convention of January 16, 1936. I added that my present advices indicated that such ratification is most unlikely in the near future and I asked the Minister’s opinion as to this.

Don Miguel Cruchaga said confidentially that he has been particularly anxious for me to propose an exchange of notes as this would be of great assistance to his Government in its negotiations with the British Government. He did not specify just what he meant by this. As to the question of the ratification by the French Government, the Minister said that the situation was somewhat obscure and he expected further reports from Paris. He admitted that should the French Government not ratify the treaty with Chile prior to February 8th next (not February 6th as stated in my despatch No. 474 of January 20, 19378), the Convention could be continued in provisional effect, for a further period, by an exchange of notes with the French Legation.

To my question as to whether in such circumstances our agreement of September 28, 1931, would not continue in force, the Minister did not reply directly but said he would study the matter and let me know.

I said that in my note of April 18, 1936, I had conveyed on behalf of my Government the draft of a proposed modus vivendi 9 which had never been accorded detailed comment by the Chilean Government. I [Page 381] stated also that I have been much perturbed by the difficulties now being encountered by American export trade to Chile at the hands of the Board of Exchange Control of the Republic—restrictions which bid fair to affect that trade most disastrously. At the same time, I said, I would be glad to oblige the Chilean Government by making a proposal for an exchange of notes for the continuance of the existing mutual commercial agreement if such a course should prove necessary.

In the above connection I have to report that the First Secretary of the British Embassy has indicated a keen desire to keep me informed as to the progress of affairs between the French Legation and the Chilean Foreign Office in this matter. Mr. Cavendish Bentinck told me that the French Chargé d’Affaires had read to him the draft of a reciprocal note to the Chilean Government which proposed the extension of the provisional status of the Franco-Chilean Commercial Convention until it may be ratified by the French Government.

It is probable that this draft has been prepared in order to provide for the continuance in provisional effect of the treaty. I have not learned of the exchange of such notes as yet. The British Secretary seems convinced that France will not ratify the treaty at this time and appears to have wished to impress me with this fact.

I mentioned the situation to the British Ambassador who reiterated what he had previously told me—that the treaty negotiations with Chile have been carried on in London. He said that the Chilean Government has been most insistent upon a commercial treaty but that his Government has not desired to enter into one at this time—preferring an agreement by exchange of notes. He expressed his belief that the French Chamber will not ratify the treaty with Chile in the near future and said he believed the policy which his Government will follow will be to enter into no further agreement for the time being.

The Chilean Government would seem to be most anxious to be in a position to make public announcement of additional commercial treaties. It would appear to me also that Great Britain possibly may be seeking some special trade concessions from Chile in return for such a pact. But no information is available here yet on this point.

Respectfully yours,

Hoffman Philip
  1. Director of the Diplomatic Department of the Chilean Ministry for Foreign Affairs.
  2. Not printed.
  3. Foreign Relations, 1936, vol. v, p. 318.