825.51/1079a: Telegram
The Secretary of State to the Ambassador in Chile ( Armour )
64. At a meeting held yesterday between representatives of the Department, the Secretary of the Treasury and Mr. Warren Lee Pier-son of the Export-Import Bank, it was agreed that it would be desirable to extend an invitation to the Chilean Minister of Finance to come to Washington to discuss economic cooperation between Chile and the United States as soon as his Government had drawn up a specific economic and rehabilitation plan to place before us. It was also agreed to proceed to attempt to secure from the Congress increased loaning powers for the Export-Import Bank, probably in the form of loaning powers specifically reserved for transactions with the other American republics. In addition it was agreed that if the Chilean Government submitted a request for a loan of gold, similar to that [Page 446] envisaged in the Brazilian arrangements,50 as a part of a reasonable program of economic cooperation, an endeavor would be made to secure congressional authorization.
The Department is very perturbed over the vacillating attitude of the Minister of Finance reported in your despatch no. 636 of April 19.51 It feels in particular that an essential condition of any arrangement for economic cooperation would be an assurance from the Chilean Government that at least the present small interest payments on the external debt be continued. In view of this attitude of the Minister of Finance it is suggested that in your discretion you may find it desirable to discuss the entire situation with the Minister of Foreign Affairs and the President outlining the Department’s position as indicated in previous telegrams, and extending the invitation mentioned above if you deem it expedient.