611.2531/213: Telegram

The Chargé in Chile (Frost) to the Secretary of State

71. British Embassy states Chilean Foreign Office initiated suggestion 6th instant that present British modus vivendi without exchange clause be renewed for 6 months; and Embassy has recommended this to London. Same source informed that postponement of entry into effect Franco-Chilean treaty beyond November 19th is not unlikely, especially if desired from any interested quarter. Whether United States should include best possible exchange clause in our modus vivendi seems to depend on whether Department is disposed to facilitate general treaty negotiations through somewhat special attitude in Chile’s case. In any event current indications of early and extensive diminution of international and internal economic strength enjoyed by Chile during past year may counsel rather active prosecution of our negotiations at this time.

Frost