The Secretary of State to the Chargé in Chile (Frost)
Sir: As you were informed in the Department’s telegram no. 131 of October 2, 1939, 7 p.m., announcement of intention to negotiate a reciprocal trade agreement with Chile was issued during the evening of October 2 for use in newspapers appearing the following morning.
Since that date a conversation has been held by officers of the Department with the Counselor and the Commercial Counselor of the Chilean Embassy, a memorandum of which is enclosed28 for your information, concerning the procedure to be followed with respect to the negotiations for the proposed agreement.
As will be noted from the enclosed memorandum of conversation, the desire of the Department has been expressed to the Chilean representatives that the negotiations be conducted in Washington. Due to the necessity of sending officers of the Department abroad to assist in the negotiation of trade agreements in prospect in the near future [Page 423]with other countries, the Department does not believe that it will be possible at this time to send any officers to Santiago to assist in carrying on negotiations there.
In accordance with the promise made to the Counselor of the Chilean Embassy as reported in the memorandum of conversation under reference, you are requested to discuss with the appropriate Chilean officials the desirability of providing the Chilean Embassy as soon as possible with their comments on the general provisions of the agreement on which it is understood Señor Gazitua submitted a report to his Government in August. It is desired to utilize the next few weeks for discussion of those provisions with the Chilean representatives, except the exchange and quota articles, as definitive negotiations cannot take place with respect to the schedules until after the close of the public hearings which will open on November 27.
There is also enclosed for your information a copy of the press releases issued by the Department on October 229 in connection with the announcement of intention to negotiate a trade agreement with Chile.
Very truly yours,