Office of the Historian

825.51/2–2047: Airgram

The Acting Secretary of State to the Embassy in Chile

confidential
Washington, March 19, 1947.

A–106. Urtel 129 Feb. 20, 2 p.m.56 Chile’s application for a $40 million credit is still being considered by the International Bank but no part of it is about to be approved. U.S. Executive Director of Bank still awaiting instructions from National Advisory Council which [Page 529] desires to learn more about possible repercussions of the recent Argentine-Chilean Agreement.58 (Above for your information only.)

Instead of the $15 million credit (Deptel 473, Oct. 1, 1946, 7 p.m.59) the Eximbank on Oct. 16, 1946, authorized credits of $5 million to Chilean State Railways and $5,350 million to Fomento Corporation (Deptel 515, Oct. 21, 1946, 6 p.m.,59 your A–78, Feb. 21, 1947). Chile has no applications pending with the Bank at present.

Total credits of $76,351,260 to Chile have been authorized by Eximbank (as of January 31, 1947) of which $49,524,468 has not yet been disbursed. Repayments on principal already made by Chile amount to $9,286,351. The following table summarizes status of Eximbank credits to Chile:

Eximbank Credits to Chile

(Millions of U.S.Dollars)
Purpose Amount Not Yet Disbursed Expiry Date
Fomento Corporation
Machinery 15.751 0. 0
Machinery 13.0 6.0 6/30/48
Steel Mill Equipment 28.0 28.0 12/31/48
Materials & Equipment 5.350 5.350 6/20/48
Total 62.101 39.350
State Railways
Railway Equip. 5.0 .924 *3/31/47
Locomotives 1.2 1.2 6/30/47
Electrical Equipment 2.8 2.8 6/30/48
Materials & Equipment 5.0 5.0 6/20/48
Total 14.0 9.924
Ingeneiria Electrica, S.A.C.
Dollar Exchange .250 .250 6/30/47
Grand Total 76.351 49.524
Acheson
  1. Not printed.↩
  2. An economic and financial agreement signed December 13, 1946, envisaged immediate credits from Argentina to Chile of some $12.5 million and a long-term arrangement of $175 million. The agreement provided for reciprocal free entry of most goods and a stipulation against extension of the provisions to a third party. (825.50/1–1347 and 625.3531/1–247)↩
  3. Not printed.↩
  4. Not printed.↩
  5. Extended to June 30, 1947.[Footnote in the original.]↩