825.51/1154: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
140. Your 178, October 11, 8 p.m. Please inform the President, Ortega and Wachholtz that this Government has been gratified to learn of their interest in an official visit to Washington in accordance with the invitation already extended. The invitation was extended specifically to the Minister of Finance in view of the primarily financial character of the problems which it was expected would be discussed at the time of the invitation. As you point out, however, the scope of discussions would now be broadened to cover additional subjects not directly of a financial nature. Therefore please indicate to the Chilean Government that this Government would be very glad to receive whichever Minister the Chilean Government deems it desirable to send.
In addition to the matters for discussion which you mention, the visit as planned would very appropriately coincide with the inception in Washington of the Inter American Economic and Financial Advisory Committee created at the Panama consultation.59 If, however, the duration of the official Chilean visit is to be closely restricted by the visiting official’s other activities, the following considerations may cause the Chilean Government to favor some further postponement of the visit:
- (1)
- The Chilean Minister might consider it desirable to be here for the later stages of the formal trade agreement negotiations. Following the hearings which begin on November 27 and the analysis of briefs submitted, these negotiations will probably not get under way until December 15, and for some time thereafter will probably consist of detailed commodity discussions of a technical nature.
- (2)
- With regard to your points 2 and 4, reference is made to the Department’s No. 108 of August 26, 5 p.m. As therein indicated, the Export-Import Bank exhausted every resource in order to set aside the $5,000,000 for the discounting of notes to be delivered to United States exporters in payment for purchases by the Fomento Corporation. It will thus be impossible to extend further credits of any sort unless and until the Congress increases the loaning powers of the Bank. It cannot be stated definitely now when such Congressional consideration will take place.
In the event it is decided to have the visiting Minister arrive on November 15 as tentatively indicated, it is very important that any [Page 455] publicity in connection with the visit should not state as one of its purposes the discussion of further credits, until after Congressional consideration of the program of financial cooperation. Such publicity might be unfavorably received by the Congress if it occurred prior to its consideration of granting the additional powers necessary to permit the extension of such credits, and might prejudice the whole program of financial cooperation with the other American Republics. Also, in the event of the arrival of the visiting Minister prior to trade agreement public hearings, any publicity giving the impression that an important Chilean official was discussing the matter of carrying on negotiations might have unfortunate repercussions in this country, both with the public and the Congress.
Under the circumstances outlined, the stated purposes of the visit if made in November should necessarily be definitely limited to the inception of the Advisory Committee, defense conversations and discussions of the implementation of the $5,000,000 credit already extended. If the visit were to be postponed a fortnight or more, there would be no objection to publicity regarding the trade agreement negotiations aspect of the visit.
- Resolution XIII, Organization of the Economic Advisory Committee, Report of the Delegate of the United States of America to the Meeting of the Foreign Ministers of the American Republics Held at Panamá, September 28–October 3, 1939 (Washington, Government Printing Office, 1940), p. 62. See also ante, pp. 15 ff.↩