740.25112A/7–344: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
819. On the basis of information contained in your 1153 of July 3, Department and Treasury are prepared to approve the proposed insurance pool provided the appropriate Chilean authority gives you in writing (in addition to the written commitment reported in your 928, May 29) the commitment requested in paragraph 1 of the Department’s 680 of June 12. Upon receipt of such a statement, you are authorized to issue a general license to all American insurance companies to participate in the pool on the same basis as American “affiliates”. Department understands British will issue similar license, but before issuing you should concert with your British colleague. We assume that you have reached agreement with your British colleague as to the spearhead firms which will be immediately eliminated from the pool.
The foregoing authorization is granted on the understanding that arrangements for blocking proceeds of payments under policies, as requested in paragraph 3 Department’s 680, will be made at the earliest practicable date. If the general license is issued, you should inform the Chilean Government that the license will be withdrawn (1) unless this condition is fulfilled within a reasonable time and (2) if a cancellation request is not complied with.