The Ambassador in Chile (Bowers) to the Secretary of State
[Received 5:30 p.m.]
220. Officials of Fomento Corporation are seriously concerned over their inability to arrive at an understanding with the Export-Import Bank concerning documentary procedure acceptable to bank in connection with the utilization of credit. These misunderstandings and delays which have persisted for weeks are seriously embarrassing the Corporation which has expended for certain major approved projects the greater part of its own dollar cash balance in anticipation of securing reimbursement of expenditures through utilization of credit. Progress of Corporation is now at a standstill pending clarification of existing misunderstanding and resultant confusion in this matter is engendering dismay and undesirable irritation. It is respectfully suggested that an immediate solution of these relatively minor questions now impending use of credit would be highly desirable. It is all the more embarrassing in view of other matters pending that an opposition paper explains the delay on the ground that our Government has no confidence in this Popular Front Government.