825.24 FLC/5–2747: Telegram
The Secretary of State to the Embassy in Chile
254. Embtel 387, May 18.42 Presidential decree authorizing payment for Air Force equipment is subject. Understanding here was that Chilean representatives would acquire broad authority to negotiate contract for purchase aircraft and equipment offered and that details of contract would be negotiated here under this authority. Urtel indicates Chilean Air Force is apparently drafting Presidential decree in such form as to leave no area for negotiation but to conform exactly with the tentative draft which was furnished by General Wooten.43 General Wooten’s draft was not intended as offer to sell on exact terms set forth therein but simply an indication of general nature of an agreement which might be negotiated as to specific terms.
It is Department’s view that certain provisions of draft contract, primarily monetary clause, should be modified. Dept regards it as highly desirable that Presidential decree grant broad authority to Chilean Emb Washington to negotiate contract with only general limitations as to amount and terms of payment. If this impossible request Chilean Air Force delay temporarily final submission Presidential decree pending submission through you revised form agreement.