Memorandum of Conversation, by the Acting Chief of the Division of the American Republics (Bonsal)

Señor Gazitúa pointed out that when Señor Schnake arrived in the United States about four months ago one of the first things which he did was to explore with Secretary Morgenthau the possibility of using our stabilization fund to assist Chilean exchange. The decision at the time was negative. However, recently the stabilization fund has entered into an agreement in connection with Argentine exchange.38 Señor Gazitúa would like to have the question reopened as far as Chile is concerned.

Señor Gazitúa said that Señor Schnake was studying the proposed $5,000,000 operation between the Export-Import Bank and the Banco Central. Señor Gazitúa’s own impression is that the amount is insufficient [Page 694] and that some sort of a stabilization fund arrangement would be much more desirable from Chile’s point of view.

I told Señor Gazitúa that I would initiate suitable inquiries and let him know of anything which might be of interest.

P[hilip] W. B[onsal]
  1. See section entitled “Negotiations respecting financial assistance by the United States to Argentina,” pp. 460 ff.