840.51 Frozen Credits 25/90
The Ambassador in Chile (Bowers) to the Secretary of State
[Received February 1.]
Sir: I have the honor to transmit herewith recent developments relative to the control decrees recently adopted in Chile, transmitted to the Department in Embassy’s Despatch No. 8668 of January 21, 1944.85
Pursuant to Decree No. 402 of January 19, 1944, providing for the liquidation of the Banco Alemán Transatlántico and the Banco Germánico de la América del Sud, the Superintendency of Banks caused to be published in the local newspapers on January 22, 1944, a regulation directed to the depositors, creditors of the bank and all concerned advising, among other things, as follows:
- 1.
- The closure of all current accounts and providing a procedure for the withdrawal thereof;
- 2.
- Suspension of unused credits in current accounts and procedure for payments on undertakings;
- 3.
- Manner of returning securities in custody of the banks;
- 4.
- Provision for collection of deposits given to the banks for collection;
- 5.
- Provision for time deposits;
- 6.
- Freezing of moneys, securities, et cetera, the property of Axis nationals.
Enclosed herewith is a copy and translation of the above regulation issued by the Superintendency of Banks.85
In connection with the liquidation of these banks, Señor Ramón Meza Barahona, Superintendent of Banks, met on January 21, 1944, with representatives of the Banco Alemán and the Banco Germánico to work out details in connection with the liquidation. It was subsequently announced that the Superintendent of Banks advised the banks that effective January 24, 1944, the banks would be operating under the supervision of liquidators appointed by the Superintendent of Banks. A liquidator was to be appointed for each branch of the banks.
It may be further observed that the recent control decrees previously referred to above, met with an unanimous loud acclaim by the local press, that considerable space has been devoted to favorable [Page 756] comments and editorials, pointing to the new control decrees as positive compliance by the Chilean Government with its agreements under the Rio de Janeiro and Washington Conferences. Attached hereto is a summary87 of some of the editorials and comments made by the leading newspapers, together with excerpts therefrom, referring particularly to Presidential Decree 34 of January 17, 1944, which is the general controls decree. Additional developments will be reported to the Department as they occur.
Respectfully yours,