611.2531/270: Telegram
The Secretary of State to the Chargé in Chile (Frost)
23. Your telegram no. 31, March 12, 2 p.m. A study is being made of the observations with respect to Article 11 and you may expect detailed comments in a few days.
With reference to the last paragraph of your telegram the Department, for reasons of law and policy, is unable to accord favorable consideration to setting up a commission “which could from time to time readjust the agreement”. In fact it could not agree to the establishment of any commission the existence of which might be construed as a delegation of the powers conferred on the President by the Trade Agreements Act30 or whose functions might conflict with those of existing American Government agencies. Nevertheless, in an effort to meet Chile’s views the Department would be willing, if Chile so desires, to give consideration to setting up commissions, similar to the recently established American Brazilian Mixed Commissions,31 the scope of which would be to observe the course of trade between the two countries, to observe the operation of the agreement and to report thereon to their Governments in their capacity as private bodies entirely independent of their Governments.