The Acting Secretary of State to the Ambassador in Chile (Bowers)
954. 1) Embtel 1544 Dec 1211 and 1552 Dec 14. Dept is pleased to observe that Chilean Govt is actively engaged in revising drafts of Schedules I and II of proposed trade agreement and is prepared to meet views of this Govt concerning a number of general provisions which have hitherto been a matter of extended discussion.
2) However, even if revised schedules disclose a large measure of mutual agreement, they will, nevertheless, require detailed study by this Govt. Public announcement of intention to negotiate must be made in view of long lapse of time since first announcement was made, and hearings must again be held. The minimum period between announcement and hearings would be one month, and hearings might occupy a week. Only after that could formal negotiations be started. [Page 845]Accordingly, it is believed that even under extremely favorable conditions, no trade agreement could be signed in less than 4 or 5 months, with an additional period of 30 days until new rates of duty and other provisions became actually effective.
3) You are requested to convey substance of foregoing to FonOff and, in view of circumstances mentioned, to lend your good offices to petition pending for reductions in duty on vehicular items in conformity with Deptel 914 Nov 30.12