825.51/1136: Telegram
The Chargé in Chile ( Frost ) to the Secretary of State
[Received 2:48 p.m.]
127. Referring to my airmail despatch No. 856 of August 19, 1939 Wachholtz today through Goytia and Commercial Attaché orally but definitely requested Embassy to ascertain at once whether Export-Import Bank can grant the Corporation of Fomento direct credits to not less than 10 million dollars if possible for 3 years, 5 million dollars to be used during remainder of 1939 primarily for purchase of agricultural machinery, balance to be used as occasion arises during 1940 for electrical and other machinery. Question of interest rate was not discussed. Goytia brought out again the fact that the Corporation is being constantly urged by the German Embassy to avail itself of favorable offers of German agricultural and other machinery. In this connection the Department’s instructions are requested as to whether if the response is favorable Wachholtz should be invited again to visit Washington in the immediate future at which time the granting of the credits would be announced. Also whether Department’s announcement of intention to negotiate a trade agreement with Argentina58 may signify that a solution of the exchange question has [Page 450] been formulated which might permit a similar announcement as to a Chilean-American trade agreement during Wachholtz’s presence in the United States. It should be borne in mind that the credits mentioned above are desired at the earliest possible time.
- Department of State Bulletin, August 26, 1939, pp. 166–170.↩