The Secretary of State to the Ambassador in Chile (Bowers)
125. Your 158, September 22, 5 p.m.18 There follows the text of the “standard” exchange article in its current form, as presented to Gazitua:
“If the Government of either country establishes or maintains any form of control of the means of international payment, it shall, except as may otherwise be agreed upon in special circumstances, (a) impose no prohibition, restriction, condition or delay on the transfer of payments for articles the growth, produce or manufacture of the other country or of payments necessary or incidental to the importation of such articles; and (b) accord unconditionally, with respect to rates of exchange and taxes or surcharges on exchange transactions in connection with such payments, and with respect to all rules and formalities in connection with such payments, treatment no less favorable than that accorded in connection with the importation of any article the growth, produce or manufacture of any third country.”
You will note that the foregoing is similar in substance to the exchange article which you have, except for the elimination of the final paragraph providing for possible termination and the inclusion of the special circumstances clause. That clause is intended to provide a sufficient degree of flexibility to cover emergency conditions which may arise in the Chilean exchange situation in the future.
- Not printed.↩