380. Telegram From the Secretary of State to the Embassy in Chile1

297. Reference Embtel 335.2 OCB has concurred in Department recommendation US through Embassy Santiago discreetly encourage Chilean authorities to follow through their announced intention of contracting commission and insure that Chileans select persons of ability integrity and reputation so that commission’s findings will carry weight. In carrying out these actions Embassy should bear in [Page 792] mind US desire refrain from appearing to sponsor commission. FYI Chileans have approached firm of Klein & Saks and Saks planning visit Chile to discuss matter.3

Dulles
  1. Source: Department of State, Central Files, 825.00/4–555. Secret. Drafted and approved by William Belton.
  2. Telegram 335, April 4, reported that the Chilean Cabinet announced the previous day that it had “agreed to contract in US a commission of technicians in economic and financial matters.” (Ibid.)
  3. In telegram 35 to Santiago, July 22, the Department informed the Embassy that Klein–Saks had completed their negotiations with the Chilean Government regarding the proposed economic mission and that the firm was ready to start operations as soon as the composition of the mission was determined. (Ibid., 825.00/7–2855)

    The Embassy presented a detailed analysis of the situation affecting the prospects of the Klein–Saks mission to Chile in despatch 241 from Santiago, September 23. It concluded that from an economic point of view the timing of the mission was propitious, but there were several other factors which suggested that “the mission is bound to have a hard row to hoe.” (Ibid., 835.00/9–2355) Additional documentation regarding the Klein–Saks mission to Chile is ibid., OSA Files: Lot 58 D 558, Klein & Saks Mission.