611.2531/173
The Ambassador in Chile (Philip) to the Secretary of State
[Received February 5.]
Sir: With reference to my despatch No. 480 of January 27, 1937,10 I have the honor to report that the Commercial Attaché to the Embassy [Page 382] had a conversation on the 27th instant with Señores Garcia11 and Serrano of the Commercial Bureau of the Foreign Office. The appointment had been sought by the Chilean officials who displayed in the course of it a very marked desire that I agree to an exchange of notes providing for the renewal of our modus vivendi. While admitting that a ratification by the French Chamber of the Commercial Convention with Chile before the expiration of the provisional period fixed by Chilean law was doubtful, and that the United States would not lose its most-favored-nation advantages in any event, they yet were most insistent on the advisability of a new and prompt exchange of notes.
At the close of this conversation Señor Serrano handed to the Commercial Attaché a draft note which had been prepared in advance by the Foreign Office.
I beg to transmit herewith a copy and translation of this draft which I have no doubt the Department will not deem acceptable.
Briefly its provisions are as follows:
- (1)
- Most favored nation treatment is restricted specifically to customs treatment.
- (2)
- Neighboring countries are excepted from its provision to a far greater extent than in other temporary agreements which Chile has recently signed.
- (3)
- The definite commitment for the study of a permanent commercial agreement is included.
The manner in which this draft has been put forward, and its contents has confirmed my previous expectation that any form of note which I might have proposed under the Department’s authorization would have been met with counter proposals of this nature.
The eagerness of the Chilean Foreign Office in this matter is somewhat difficult for me to understand. However, it would seem that it may be attributed to at least two causes: (1) a desire to bring Great Britain to the point of agreeing to negotiate a new commercial treaty by pointing to a similar understanding with the United States; and (2) as an asset in the March senatorial elections. In this latter connection, the public has been given to understand by the Government-inspired press that negotiations for commercial treaties with the United States and Great Britain already are under way.
Moreover, it has been announced that Don Miguel Cruchaga will soon resign his portfolio as Minister of Foreign Affairs and will become a candidate for election to the Senate. It may be that it would be considered useful in this eventuality to allude to such pending treaty negotiations among the accomplishments of Señor Cru-chaga’s term of office as Minister of Foreign Affairs.
[Page 383]In view of the fact that there has been no indication yet of any relaxation of exchange restrictions as affecting export trade from the United States to this country, I would be glad to receive an expression of the Department’s views in the matter of a new exchange of notes, should this prove essential. I particularly desire to be informed as to the Department’s wishes regarding the possible reference to negotiations for a commercial treaty with Chile in such an exchange of notes.
I judge that the Chilean Foreign Office attaches considerable importance to the inclusion of such a reference.
Respectfully yours,