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

No. 5012

Sir: Reference is made to the Department’s instruction no. 4954 of June 5, 1945, the Embassy’s telegram no. 866 of June 27,99 and related correspondence regarding the proposal by the Chilean Government to grant unilaterally to the United States, by means of an exchange of notes, certain reductions in import duties based upon rates in effect during the life of the recent Franco-Chilean Treaty of Commerce.

You are hereby authorized to proceed with the exchange of notes on the basis which has been outlined previously. However, the Department approves the Embassy’s suggestion, at the end of the first paragraph of the telegram under reference, that the exchange be deferred until the Embassy has been notified by the Department of its receipt of the revised Chilean draft.

There is enclosed a draft press release1 which the Embassy should discuss with the Chilean officials. If the latter have no objections to the proposed release, the Embassy should suggest that a statement in similar terms be issued in Santiago at the time the notes are exchanged.

When agreement has been reached with the Chilean Government on the foregoing matter as well as on all other points mentioned in previous instructions, the Embassy may establish the date for the exchange of notes2 and for the issuance of the press release. It would be most convenient to have the press release issued at noon of whatever day is chosen. The Department should be apprised by telegram of the date selected several days prior to the date, so that there will be enough time to complete all necessary arrangements here.

Very truly yours,

For the Acting Secretary of State:
William L. Clayton

[A decision by the Foreign Economic Administration and the Department of State to liquidate the Decentralization Plan of Export Control as of October 1, 1945, was circulated to the diplomatic representatives in the American Republics, except Argentina, on July 14, 1945. For text of circular telegram of that date, see page 545.]

[In accordance with an exchange of notes between the Governments of the United States and Chile on July 30, 1945, the Chilean Government [Page 837] reduced import duties on certain commodities from the United States for one year, or for less than a year in the event that a more comprehensive agreement were reached, or that either party announced the termination, preceded by 30 days’ notice. For texts of notes, see Department of State, Treaties and Other International Acts Series No. 1529, or 60 Stat. (pt. 2) 1713.]

  1. Latter not printed.
  2. For text of statement as released, see Department of State Bulletin, August 5, 1945, p. 188.
  3. The notes were exchanged July 30, 1945.