The Chilean Ambassador ( Cabero ) to the Secretary of State

Excellency: I have the honor to inform Your Excellency that my Government has instructed me to state that:

—The Government of the Republic of Chile, recognizing that the Corporación de Fomento de la Producción (Chilean Development Corporation), hereinafter called the “Corporation”, as a corporate entity under Chilean Law is legally authorized to contract loans in domestic or foreign currencies, and recognizing the desirability of [Page 685] assisting the Corporation in carrying out the provisions of Law 6334, hereby approves the terms of the agreement entered into as of June 13, 1940 by and between the Corporation and the Export-Import Bank of Washington.—
—The Government of the Republic of Chile will, accordingly, extend to the Corporation all its cooperation and assistance so that the Corporation may comply strictly with the said agreement and, in particular, that it may attend in appropriate form to the service in dollars United States currency of interest and amortization of the loan which it has contracted. Principal and interest on such loan shall be serviced in dollars United States currency prior to the servicing of any other obligations of the Corporation heretofore or hereafter incurred. The dollar revenues resulting from the extraordinary taxes levied pursuant to Chilean Law 6334 or other law now in effect or hereafter enacted will be set aside and utilized to the extent necessary to cover the payment of principal and interest of the obligations issued under said agreement.—
—In the event the President of the Republic of Chile contracts a loan or loans pursuant to the provisions of Article 28 of Law 6334, 50% of the proceeds thereof will be remitted to the Corporation in foreign currency. All of such proceeds received by the Corporation will be applied entirely to the repayment of any amounts owing by the Corporation to the Export-Import Bank of Washington.—

Accept [etc.]

A. Cabero