The Secretary of State to the Ambassador in Chile (Bowers)

No. 48

Sir: With reference to the conversations being conducted here looking toward the negotiation of a reciprocal trade agreement between [Page 425] the United States and Chile, it now appears that it will not be possible to hand definitive proposals on the two Schedules to the Chilean representative in Washington earlier than about December 6 or 7. As nearly a week will be required for these proposals to reach the Chilean Government if they are transmitted by air mail, it will probably be necessary, in view of the time element discussed later, to send them to Santiago by telegraph. As it is believed that telegraphic communication can be more expeditiously handled through the Department than through the Chilean Embassy in Washington, our definitive proposals on the Schedules will be telegraphed to you as soon as they have been handed to the Chilean representative here, and you will be requested to transmit them to the appropriate officials in the Ministry of Foreign Affairs as quickly as possible.

With regard to the general provisions of the proposed agreement, the Chilean Embassy has already transmitted this Government’s proposals on all of the twenty articles, together with a Spanish translation of those articles made by the Chilean Embassy which had previously been submitted for the Department’s comment.

There is enclosed for the Embassy’s information a text in English and Spanish of the twenty articles proposed by this Government.30 A comparison of this text with the mimeographed text of the “standard” provisions transmitted with the Department’s instruction no. 26 of October 24, 1939,31 will reveal a few changes, particularly in Articles I, VII and XX. With respect to the last sentence in Article VII, this was inserted at the request of the Chilean representative and has not yet been submitted to the Trade Agreements Committee. Article XX has been drafted with existing Chilean practice in mind, and would require that the agreement be ratified by the Chilean Congress within one year from the date of its provisional entry into force. The inclusion of the clause in parenthesis in Article XII is conditional upon acceptance by the Chilean Government of Article IV in the form proposed by this Government.

There is also enclosed a draft headnote31 in English and Spanish for Schedule I, which may be used in the proposed agreement. It will be noted that this is similar to the headnote which may be used for Schedule II, with appropriate change for the name of the country.

In case it should be found necessary during the next few weeks to communicate with the Embassy by telegraph regarding the general provisions, reference will be made to the enclosed text and not to the mimeographed version. As of interest to the Embassy there is also enclosed a copy of the informal memorandum handed the Counselor of the Chilean Embassy on November 2531 regarding Articles III, [Page 426] IV and XII of the proposed agreement, a translation of which Señor Gazitua has already sent to his Government.

With regard to the proposed agreement in general, it is considered essential by the Department that signature take place by January 1, 1940. It is desired, therefore, that you stress with the appropriate Chilean officials the desirability of proceeding as rapidly as possible at this time with consideration of the general provisions, and later, of our proposals on the schedules.

Very truly yours,

For the Secretary of State:
Henry F. Grady
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