825.51/1221: Telegram

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

98. Reference to my telegram No. 85, April 30, 6 p.m. Decree 1353 of April 24, 1940 published in Diario Oficial May 17 in its preamble confirms (first) that development corporation is empowered to contract directly loans, advances, or credits and to engage in commercial operations; (second) what corporation will directly service its obligations. Principal provision of decree itself amplifies Decree 781 in sense that Treasury General will pay to amortization institute for delivery to development corporation the funds in foreign currency derived from new copper taxes to the extent necessary to service commercial credits incurred by corporation. This decree goes to clarify uncertainties raised by Decree 781 as indicated in my despatch No. 424 of April 5.29 Text of Decree 1353 will be forwarded by airmail.


[On June 13, 1940, the Board of Directors of the Export-Import Bank of Washington announced the authorization of a credit of $12,000,000 to the Corporación de Fomento de la Producción. The financing was to assist in the acquisition and transportation to Chile of United States industrial machinery, equipment and supplies.]

  1. Not printed.