611.2031/250
The Chargé in Chile (Frost) to the Secretary of State
[Received January 21.]
Sir: I have the honor to acknowledge receipt of the Department’s instruction No. 296 of January 5, 1938, with regard to the possibility of entering into negotiations for a reciprocal trade agreement between the United States and Chile. The Embassy has received renewed indications that the officials of the Chilean Foreign Office are desirous of discussing a commercial accord in the immediate future; and the fact that bases for discussion are now in my hands came to the knowledge of Señor Garcia24 in connection with the conclusion of the modus vivendi.
The advent of warm weather has led to the departure of a number of officials on their annual holidays, including Señor Benjamin Cohen,25 Guillermo Gazitúa26 and (temporarily) Señor Desiderio Garcia. In addition there may be mentioned the fact that immediately [Page 435] after the signature of our modus vivendi the Foreign Office turned its attention again to the English and German treaties which had been receiving little consideration.
In view of these circumstances and bearing in mind the Department’s allusion to the tactical position, I believe it will be well not to anticipate active discussions as to the trade agreement before the early days of February. In the meanwhile, however, I propose to discuss the text of the various general provisions furnished in the first enclosure with the Department’s instruction under acknowledgment with Señor Alberto Serrano and with Señor García when the latter shall return sometime around the 20th instant. It is assumed that in suggesting comments by the Embassy as to the applicability and adequacy of these provisions the Department has in mind at least informal conversations with Chilean officials in order that useful comment may be developed.
Respectfully yours,