611.2531/178
The Ambassador in Chile (Philip) to
the Secretary of State
No. 527
Santiago, March 13, 1937.
[Received March
19.]
Sir: I have the honor to confirm the receipt of
the Department’s cabled Instruction No. 6 of February 18, 6 p.m., and to
transmit with this a copy of a note to the Ministry of Foreign Affairs,
dated the 22nd ultimo, and which encloses the text of a new modus vivendi between the United States and Chile
as proposed by the Department.
I had hoped that before this I might have been in receipt of some
definite statement from the Foreign Office as regards its acceptance of
the proposed text.
However, the Department will understand that owing to the retirement of
the Minister of Foreign Affairs and the subsequent distractions involved
by the parliamentary elections of the 7th instant and resulting
uncertainties as to changes in the Cabinet, there has been no real
opportunity to discuss the matter with an authoritative official.
Therefore, I have judged it best to adopt a waiting attitude.
I judge from comments made to me by minor officials of the Foreign Office
that the Department’s proposal was received with a certain sense of
relief by the Chilean Government. I am not certain, however, that this
was not due most largely to certain reference in the text to the
prospect of an eventual treaty of commerce and navigation.
It has been reported to me that the Chilean Embassy in London has given
the British Government to understand that negotiations are pending with
the United States for such an instrument.
Although this information is not authoritative, I do know that Chile has
pressed the advocacy of such a treaty with Great Britain for many months
past and it is not unlikely that the Government would find it
advantageous in that quarter to be able to point to the fact that
similar negotiations with the United States were under way.
I am also under the impression that the Department would not object to
affording Chile such indirect assistance should the latter accept a form
of modus vivendi which would meet with its
approval.
Minor officials of the Foreign Office here have commented to me upon the
Department’s draft in rather favorable terms. The desire has been
expressed in these comments that we agree to certain changes in the text
which would strengthen the outlook for a definite treaty of commerce and
navigation to follow, etc.
At the present moment the resignation of the Minister of Hacienda and
Acting Minister of Foreign Affairs16 is still in suspension, and
[Page 387]
nothing definite is known yet as to the
appointment of a successor in either office.
The Department will be promptly informed of any developments which may
transpire in connection with its proposed form of modus vivendi.
Respectfully yours,
[Enclosure]
The American Ambassador (Philip) to the Chilean Acting Minister for Foreign
Affairs (Ross Santa
Maria)
Santiago, February 22, 1937.
Excellency: I have the honor to refer to my
previous conversations with His Excellency Don Miguel Cruchaga
Tocornal with regard to the substitution of a new modus vivendi to replace that of September 28, 1931
between our respective Governments.
I have the pleasure to inform Your Excellency that in deference to
the expressed wishes of the Government of the Republic of Chile,
reiterated on two occasions by the Ambassador of Chile in
Washington, my Government has authorized me to submit for your
consideration the draft of a modus vivendi,
herewith transmitted, and which it has empowered me to effect by an
exchange of notes immediately.
I hope that the accompanying draft will meet the approval of Your
Excellency’s Government.
Accept [etc.]
[Subenclosure]
American Draft Note Embodying Provisional
Commercial Agreement
Santiago, . . February, 1937.
Excellency: I have the honor to confirm to
Your Excellency the terms of the provisional commercial agreement
which our respective Governments have agreed to establish pending
the negotiation of a more comprehensive commercial agreement or of a
definitive treaty of commerce and navigation, as follows:
- 1.
- The contracting parties agree to concede reciprocally
unconditional and unlimited most favored nation treatment in
all that concerns customs duties and all accessory imposts,
the manner of applying duties as well as the rules and
formalities to which customs operations can be
submitted.
- 2.
- In the event that the Government of the United States of
America or the Republic of Chile establishes or maintains
any form of quantitative
[Page 388]
restriction or control of the
importation or sale of any article in which the other
country has an interest, or imposes a lower duty or charge
on the importation or sale of a specified quantity of any
such article than the duty or charge imposed on importations
in excess of such quantity, it shall allot to the other
country during any quota period a share of the total
quantity of any such article permitted to be imported or
sold at such lower duty or charge which is equivalent to the
proportion of the total importation of such article which
such other country supplied during a previous representative
period, unless it be mutually agreed to dispense with such
allocation.
- 3.
- The Government of Chile agrees to impose no restrictions
or delays on payments for any future imports from the United
States.
- 4.
- It is understood that the advantages now accorded or which
may hereafter be accorded by the United States of America,
its territories or possessions, the Philippine Islands, or
the Panama Canal Zone to one another or to the Republic of
Cuba shall be excepted from the operation of this
agreement.
- 5.
- Nothing in this agreement shall be construed as a
limitation of the right of either country to impose on such
terms as it may see fit prohibitions or restrictions (1)
imposed on moral or humanitarian grounds; (2) designed to
protect human, animal or plant health or life; (3) relating
to prison-made goods; (4) relating to the enforcement of
police or revenue laws; or (5) relating to the control of
the export or sale for export of arms, ammunitions, or
implements of war, and, in exceptional circumstances, all
other military supplies.
- 6.
- The agreement between the United States of America and the
Republic of Chile signed September 28, 1931, shall terminate
on the day on which the present agreement comes into
force.
- 7.
- The present agreement shall come into force as of this day
and shall continue in force until superseded by a more
comprehensive commercial agreement or by a definitive treaty
of commerce and navigation, or until denounced by either
country by advance written notice of not less than thirty
days.
Accept, Excellency, the assurances of my highest and most
distinguished consideration.
