611.2531/259

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

No. 859

Sir: I have the honor to report that in the course of an interview yesterday with the Under Secretary of Commerce, regarding the exchange of notes as to the entry into effect of the modus vivendi, Señor Garcia, who has just returned from a fortnight’s vacation, adverted frankly to his desire to move forward with the negotiations respecting the trade agreement. Señor Gazitúa, who was also present, mentioned the fact that the Commercial Section had been making a clause-by-clause study of the so-called Hull agreements which have already been negotiated by the United States, and has found a number of clauses which are of interest to Chile and which may probably be accepted in the immediate future as a beginning toward a Chilean-American agreement.

Señor Mario Illanes, who has been Chilean Consul in San Francisco for more than three years past, and who is now in Santiago on leave of absence, has been temporarily detailed to assist Señor Gazitúa [Page 438] in this work. Both these officers are earnestly friendly to the United States, and appear to be earnestly interested in bringing about definite results at an early date.

Respectfully,

Wesley Frost