Memorandum of Conversation, by Mr. Edgar L. McGinnis, Division of North and West Coast Affairs

Participants: Señor Don Felix Nieto del Rio, Chilean Ambassador
Señor Don Roberto Vergara, Head of the New York Office of the Fomento Corporation
Mr. Paul Daniels, Director of ARA
Mr. James Espy, Acting Chief of NWC
Mr. James Webb, Jr., NWC
Mr. Edgar McGinnis, Jr., NWC

The Chilean Ambassador, accompanied by Mr. Roberto Vergara, called upon Mr. Daniels today to discuss various matters of mutual interest. At the close of the conversation Mr. Vergara asked Mr. Daniels what the Department’s attitude would be toward an application by Chile to the Export-Import Bank for a loan to finance the construction of a petroleum refinery. In reply Mr. Daniels said that he was very definitely of the opinion that this Government could not favorably consider such a loan to Chile at this time. He said that this Government could not justify such a loan to American business interests and to the U.S. Congress in the present state of public opinion towards foreign petroleum development. Mr. Daniels indicated that the matter was one of considerable political delicacy and that he could foresee no possibility of the Chileans obtaining a loan for this purpose at the present time.