811.20 Defense (M) Chile/79a: Telegram

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

61. The Federal Loan Agency informs us that the negotiations for the agreement with the Chilean Government having to do with strategic and critical materials are now completed and that it is desired to have the document signed on Monday, the 19th. Our understanding [Page 48] is that the form, contemplated is an exchange of notes between yourself and the Ministry of Foreign Affairs and that your reply will be countersigned by Graham as the representative of the Federal Loan Agency. This form seems satisfactory to the Department. Before, however, authorizing you finally to sign, would you kindly telegraph at once the text of your contemplated reply to the Ministry of Foreign Affairs as it now stands, omitting exhibit A. The Department will send its reply over the week-end so that you may be in a position to sign on Monday.

As for the question raised in your 59 of January 12, this Government would be quite unwilling to accept any such commitment in connection with the purchase agreement and assumes that there is no mention of action under this provision in the text of your exchange of letters with the Chilean Ministry of Foreign Affairs.