825.51/6–746: Telegram
The Acting Secretary of State to the Ambassador in Chile ( Bowers )
307. Urtel 535 Jun 7.54 For Embs confidential info Fomento petroleum loan still under consideration Eximbank but present opinion of Dept is that final consideration of loan will be based on following factors: (1) Overall position of Chile’s indebtedness and future ability to pay requires that any additional loans be given special scrutiny, (2) Loans for petroleum exploration are essentially of a speculative nature. Hence such projects are much less likely to provide desirable feature of self liquidation, (3) This Govt not convinced that all possible sources of private capital have been adequately explored.
If you consider advisable you may communicate informally import of above to appropriate authorities.
- Not printed.↩