Memorandum of Conversation, by Mr. William F. Gray of the Division of Commercial Policy

Subject: Proposal of Chilean Government To Grant Duty Concessions to the United States Based Upon the Former Franco-Chilean Treaty of Commerce

Participants: Sr. don Mario Manes, Chilean Commercial Counselor
Mr. Smith—CP
Mr. Gray—CP

Sr. Illanes called to find out whether the Department had completed its consideration of the proposal under reference. (Sr. Manes had previously made several telephone inquiries in this regard, and it is evident that his Foreign Office has been urging him to try to obtain speedy action by the Department on the Chilean proposal.)

Mr. Smith informed him that instructions on this matter have left the Department for the American Embassy at Santiago. Sr. Manes was told that the Chilean proposal has been accepted subject to certain qualifications set forth in a memorandum to be handed to the Chilean Foreign Office by the American Embassy.96 The contents of this memorandum were discussed and Sr. Manes evinced no displeasure over the qualifications, which, in brief, were:

That no publicity be given now to the Chilean proposal,
That the exchange of notes be deferred until the Congress has disposed of the trade agreements legislation,
That this Government, in accepting the proposal, does so without in any way obligating itself to give favorable consideration to some later proposal of the Chilean Government, and
That certain changes, chiefly editorial in character, be made in the note from the Chilean Acting Minister of Foreign Affairs (in which was presented the subject Chilean proposal).

Regarding point 2 of the above, Sr. Manes was interested in knowing approximately when the Senate will have completed its action on the Act. He was told that we were hopeful that it would be around June 12, but, since debate would not be limited, the date of final action is of course uncertain.

(Sr. Illanes appeared both relieved and quite pleased that the proposal has been accepted by this Government and that instructions, accordingly, have left the Department for Santiago.)

  1. Not printed.