Memorandum of Conversation, by the Assistant Chief of the Division of the American Republics (Daniels)

On March 27 Señor Pedregál and Señor Gazitúa23 called on Mr. Duggan24 at the latter’s office. Señor Pedregál stated that he had received a cablegram from Chile to the effect that certain proposed deals of the Fomento Corporation were being held in abeyance pending a decision regarding the proposed Export-Import Bank credit. He expressed the urgent need of his organization to be informed regarding the outcome of his request for a credit from the Export-Import Bank. He said he did not wish to appear to be pressing for a favorable decision, but said that it was essential that a decision one way or another be reached in the near future in order that activities of the Fomento Corporation might not be suspended indefinitely. Señor Gazitúa said that they had attempted to call on Mr. Jones25 of the Federal Loan Agency, but had been unable to see him and gathered the impression [Page 683] that the latter had not as yet considered Señor Pedregál’s memorandum of March 19.26

Mr. Duggan said that he well understood the desire of Señor Pedregál for early action to be taken in the matter one way or another, in order that he might be free to make further plans, and expressed regret that as yet no definite conclusion had been reached. He said that further efforts would be made by the Department to get a decision on the matter from the Export-Import Bank as soon as possible.

While Señor Pedregál and Señor Gazitúa brought this matter up in a courteous and friendly manner, it was apparent that they were somewhat disgruntled with the way matters were progressing. They seemed somewhat confused with regard to the respective responsibilities of Mr. Jones, Mr. Pierson,27 and the Department.

  1. Guillermo Gazitúa, Counselor of the Chilean Embassy.
  2. Laurence Duggan, Chief of the Division of the American Republics.
  3. Jesse Jones, Federal Loan Administrator.
  4. Not found in Department files.
  5. Warren Lee Pierson, President of the Export-Import Bank.