825.5151/401

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

No. 628

Sir: I have the honor to acknowledge the receipt of the Department’s Instruction No. 231 of the 8th instant expressing approval of my note to the Minister of Foreign Affairs of May 17th last, respecting the treatment being accorded by the Exchange Control Commission of Chile to importations from the United States.

The Department’s intimation that it desires any formal notes on this subject from the Embassy to be referred to it prior to delivery will be strictly complied with in the future.

[Page 435]

In this connection I beg to transmit herewith a copy and translation of a note received from the Foreign Minister, dated the 11th instant, which is in reply to my note referred to by the Department.

I hope the fact that Don José Ramón Gutiérrez not only affirms that the importation of commercial aircraft may be effected by means of export drafts but that every effort will be made to lessen the exchange difficulties to which imports from the United States are subjected may be the cause of satisfaction to the Department.

. . . . . . . . . . . . . .

Respectfully yours,

Hoffman Philip
[Enclosure—Translation]

The Chilean Minister for Foreign Affairs (Gutiérrez Alliende) to the American Ambassador (Philip)

No. 4878

Mr. Ambassador: Your Excellency has seen fit, in Note No. 469 of May 17th last, to refer to the situation of that merchandise imported from the United States which the Exchange Control Commission classifies as luxury articles, permitting their entry into the country only against exchange arising from Placer Mines gold.

After recalling the position expressed in the Note of November 6, 1936,—that as long as the special rate of 35 pesos per dollar is maintained, Your Excellency’s Government has no course other than to regard it as discriminatory against the commerce of the United States,—Your Excellency states that you have recently been informed that the Exchange Commission, having been consulted upon the importation of commercial airplanes, replied that this permission would be granted subject to said Placer Gold exchange. For this reason Your Excellency manifests your concern due to this apparent tendency to augment the list of articles which require payment in gold, for which you believe the availabilities to be insufficient as, according to information received by Your Excellency, deliveries of gold exchange are delayed three or four months. Your Excellency ends by requesting me to inform you in this regard and by suggesting that the situation referred to might be ameliorated by transferring several articles which are now on the gold list to (the list of) those payable in export draft exchange.

In reply, I take pleasure in informing Your Excellency that I have given careful consideration to the problems which Your Excellency has mentioned and which have been a cause of concern to this Chancery for some time, so as to find a just and harmonious solution which would make possible a definite arrangement, as I had the honor to [Page 436] state to Your Excellency in the Aide-Mémoire of the 29th of April last. While we continue our efforts to find the formula which would satisfy these desires, I have at present the honor to inform Your Excellency that the Exchange Control Commission, in answer to the specific requests embodied in Your Excellency’s note now being answered, has stated to this Ministry that it has not established that importations of commercial airplanes from the United States must be covered with Placer Mines gold, but to the contrary that it is disposed to authorize these importations with export draft exchange.

I also take pleasure in informing Your Excellency that the Exchange Commission has adopted extraordinary measures to bring up to date, within the first weeks of this month, all pending requests to be covered with this exchange. That Your Excellency may be more fully informed, I enclose a list58 of the merchandise the importation of which should be covered with Placer Mines gold.

Your Excellency has done well in stating that he is assured of the desire of the Government of the Republic of Chile to facilitate in every way its commercial relations with the United States. These are precisely the aims which govern it, and I shall be most happy if my personal action in this Ministry contributes to the establishment of the solutions which we seek and which, for mutual benefit, should eliminate the difficulties of reciprocal interchange which have arisen as a result of the anomalous conditions which world commerce has had to face up to the present time.

I avail myself [etc.]

J. Ramón Gutiérrez
  1. Imports payable in Placer Mines gold: automobiles, trucks, spare parts and tires; radios and spare parts; gramophones, phonographs and spare parts; moving picture films, accessories and spare parts; liquors in general; articles of silk; fine furs: sweets, sweet biscuits, chocolates, etc.; shoes; hats; gloves; ready-made clothing; rugs; accessories of fine cut glass; furniture: leather articles; sporting articles: suitcases and handbags; jewelry, jewels of all kinds, costume jewelry; pictures, paintings, sculptures; toys; perfumes and toilet articles.