394. Letter From the Ambassador in Chile (Beaulac) to the Officer in Charge of West Coast Affairs (Belton)1
Dear Bill: I have just seen the Department’s telegram 355 of February 242 in which the Department expresses its extreme concern over the possibility of discriminations against the copper companies in connection with the new free fluctuating rate of exchange.
I will be interested in the background of this telegram since the companies are quite accustomed to making such arrangements with the Chilean Government, and since the idea of the Government’s recouping a large part of the windfall that will accrue to the companies from the new exchange rate came from Klein–Saks, although we can be sure that the Government would have thought of it by itself.
The telegram sounds a little extreme to me in the light of the past relationship between the Chilean Government and the companies and because I understand that it is quite customary for a government to want to recoup part of the windfall profits that accrue as a result of a change in the exchange rate.
I am particularly interested in knowing whether any pressure was received from the companies in connection with the telegram.
It was fine to see you in Washington. So far everything seems to be pretty quiet down here, although we are naturally keeping our fingers crossed. It is so much better than we dared to anticipate a few months ago that we are greatly encouraged.
Sincerely yours,
- Source: Department of State, Central Files, 425.006/2–1456. Confidential; Official–Informal.↩
- Document 390.↩