Page images
PDF
EPUB

CHILE

PROPOSED TREATY OF FRIENDSHIP, COMMERCE and CONSULAR RIGHTS BETWEEN THE UNITED STATES AND CHILE

[blocks in formation]

1927 Aug. 19 (765)

To the Ambassador in Chile

Oct. 6 (146)

Oct. 14 (52)

Instructions to ascertain whether Chile is disposed to enter into a general treaty of friendship, commerce and consular rights, providing for unconditional most-favored-nation treatment.

From the Ambassador in Chile (tel.)

Report that Foreign Office officials indicated the possible exception of both Bolivia and Peru from most-favored-nation treatment, and that they desire the submittal of a draft treaty on the general lines of the U. S.-German commercial treaty of December 8, 1923.

Page

517

519

To the Ambassador in Chile (tel.)

520

Detailed instructions for preparing a draft treaty on the basis of the German treaty; advice that the Department is studying the exception of Bolivia and Peru.

Oct. 24 (161)

From the Ambassador in Chile (tel.)

523

Request for instructions as to whether or not to present draft treaty to Foreign Office.

Oct. 27 (56)

Oct. 30 (164)

Nov. 2 (788)

To the Ambassador in Chile (tel.)

Request for opinion whether the negotiations would be prejudiced if submittal of draft treaty were postponed until the middle of November in order that Department may give further consideration to the question of including substance of Senate reservation regarding national treatment of shipping. From the Ambassador in Chile (tel.)

Opinion that postponement is desirable and will promote ultimate success.

To the Ambassador in Chile

Transmittal of draft treaty for presentation to Foreign Office, with explanation of the more important differences between the draft and German treaty, for information and use in discussions with Chilean officials; instructions not to present draft until Department so advises.

523

523

524

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING PROPOSED LEGISLATION FAVORING CHILEAN MERCANTILE MARINE

1927 Aug. 22 (109)

From the Ambassador in Chile (tel.)

Request for specific instructions concerning Grace Line's desire that Ambassador make informal representations to Chilean Government against the injury likely to result to commercial interests by reason of a plan for preferential customs duties on importations in national vessels, now under consideration by a Chilean commission, for the purpose of promoting a national merchant marine.

526

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING PROPOSED LEGISLATION FAVORING CHILEAN MERCANTILE MARINE-Continued

Date and number

Subject

Page

1927 Aug. 25 (111)

Aug. 30 (115)

Aug. 31 (37)

Sept. 1 (118)

Sept. 2 (120)

Sept. 14 (41)

Sept. 17 (133)

From the Ambassador in Chile (tel.)

Synopsis of proposed shipping law, which provides for (1) repayment of Panama Canal tolls, (2) premium to shippers of nitrate in Chilean vessels, (3) 10 percent reduction in customs duties on imports in Chilean vessels, (4) loans to Chilean companies for the purchase of new vessels, (5) effective date of January 1, 1928; desire of Grace Line manager that protest be made, especially with regard to points (1) and (2); request for instructions.

From the Ambassador in Chile (tel.)

Information that a project of law embodying all points except point (2) has been submitted to Congress; renewal of request for instructions.

To the Ambassador in Chile (tel.)

Belief that objection may properly be made to point (3) and also to preferential export duties or bounties if measures such as those contemplated in point (2) are brought up again; instructions to try to dissuade Chilean Government from applying these contemplated discriminatory measures; instructions to discuss point (1), indicating that the United States would view with concern any step which would tend to substitute for the present regime of equality in the use of Canal one of special advantage; information that Department has no objections to point (4).

From the Ambassador in Chile (tel.)

527

528

528

529

Information that proposed law omitted point (2) because section 17 of nitrate law already empowers the President to pay bounties to producers who ship in Chilean vessels.

530

From the Ambassador in Chile (tel.)

Opinion that a possible tariff reduction under discussion, as well as the proposed shipping law, would stimulate American export trade at least until Chile purchases new ships and establishes services to Europe; assumption that in spite of this consideration, Department wishes Ambassador to comply with its telegram No. 37 of August 31.

To the Ambassador in Chile (tel.)

Instructions to continue efforts to dissuade Chilean Government from applying discriminatory import duties in favor of national vessels and bounties provided under section 17 of the nitrate law; request for information as to whether contemplated payments of 7 pesos per metric ton to Chilean ships for nitrate carried to the United States, Canada, and Cuba, would be made to shippers or shipowners.

From the Ambassador in Chile (tel.)

Issuance by the President of a decree under sections 17 and 33 of nitrate law, to become effective upon official publication, providing specific bounties for nitrate shipments, according to destination; information that the bounty is to be paid to ship and not to producer, and request that this point be corrected in telegrams Nos. 111 of August 25, and 118 of September 1.

531

532

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING PROPOSED LEGISLATION FAVORING CHILEAN MERCANTILE MARINE-Continued

Date and number

Subject

Page

1927 Sept. 20 (136)

Sept. 21 (141)

Oct. 28 (163)

Nov. 9 (172)

Nov. 22 (62)

Dec. 6

From the Ambassador in Chile (tel.)

Report of discussions with Chilean officials and diplomatic
colleagues concerning the ship subsidy bill; opinion that before
final passage, Canal tolls provision, and possibly preferential
duties and bounties, will be stricken out and will be replaced by
a provision for lump sum subvention to companies.
From the Ambassador in Chile (tel.)

Report of further representations; opinion that ship subsidy
law will either be redrafted or replaced by a substitute law
granting lump sum subvention or payments for maintenance
service on designated routes.

From the Ambassador in Chile (tel.)

Synopsis of substitute ship subsidy bill, providing for (1) subventions to Chilean companies which have maintained a regular service through the Canal, (2) share by Government in profits and management, (3) loans for the purchase of new ships, (4) 10 percent increase in consular duties to cover expenses occasioned by this law, (5) effective date, January 1, 1928; opinion that new bill is unobjectionable, but request for instructions.

From the Chargé in Chile (tel.)

Information that Congress will convene in special session November 15 and that Chargé has renewed representations concerning effect on American interests of the proposed legislation and tariff revision.

To the Chargé in Chile (tel.)

Instructions to advise appropriate authorities that the enactment of shipping or tariff legislation discriminatory to American ships will eliminate the only basis on which the President is empowered to continue in suspension the U. S. law providing for a discriminatory duty of 10 percent on goods imported in foreign ships.

Memorandum by the Secretary of State

Conversation in which the Chilean Ambassador advised that his Government intends to abandon plan for discriminatory duties and refund of Canal tolls, and stated that if any shipping legislation is enacted, it will probably be in the nature of a straight subsidy.

532

533

534

535

536

537

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING EFFECTS OF PROPOSED COAL LAW ON AMERICAN INTERESTS

1927

Sept. 1 (119)

From the Ambassador in Chile (tel.)

537

Receipt by Chilean Congress of a proposed law to aid the coal industry, which includes a provision for heavy increased duties on coal and crude petroleum.

Oct. 10 (50)

To the Ambassador in Chile (tel.)

Instructions to make informal representations against enactment of proposed law, because the heavy progressive duty on oil will injure American copper interests in Chile.

538

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING EFFECTS OF PROPOSED COAL LAW ON AMERICAN INTERESTS-Continued

Date and number

1927 Oct. 19 (151)

Subject

Page

From the Ambassador in Chile (tel.)

538

Assurance to Foreign Office by Minister of Hacienda that he will make changes in the law which will save American interests from injury.

539

Nov. 1 (58)

Nov. 2 (168)

Nov. 16 (176) Dec. 10 (186)

To the Ambassador in Chile (tel.)

Instructions to investigate and report status of the coal bill, in view of information from American interests that Chilean Government is paying little attention to protests made by their representative in Chile, and recent approval of the measure by the Joint Committee of the Chilean Congress.

From the Ambassador in Chile (tel.)

Information that Chilean Government shows unwillingness to modify the proposed measure, but that Ambassador has made further representations and will take additional steps immediately.

From the Chargé in Chile (tel.)

Passage of coal bill by Chamber of Deputies, November 15.
From the Ambassador in Chile (tel.)

Continued efforts to secure modification of proposed law;
understanding that, as a mark of good will, the President may
be authorized to suspend or modify application of the law, if
in his judgment wise; Foreign Office assurance that the entire
situation will be thoroughly studied.

(Footnote: Information that the coal law was signed by the President on January 9, 1928.)

539

540

540

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGarding EffecTS OF PROPOSED INSURANCE LEGISLATION ON AMERICAN INTERESTS

1927 May 5 (19)

May 13 (64)

Aug. 1 (97)

To the Ambassador in Chile (tel.)

Instructions to inquire of Foreign Office concerning Finance
Minister's intention to nationalize insurance, thereby elimi-
nating foreign companies, and to advise Department as to extent
to which proposed measure appears to be confiscatory.
From the Ambassador in Chile (tel.)

Informal representations to Foreign Minister both prior and
subsequent to receipt of Department's telegram No. 19 of
May 5; opinion that project does not appear to be confiscatory
except in the respect that it destroys property rights by pro-
hibiting the continuance of a business which was established
in the past at considerable expense.

From the Ambassador in Chile (tel.)

Advice that the insurance bill, modified and made more drastic, has been sent to Congress; information that revised bill permits foreign companies now doing business in Chile to reorganize as national companies, and that section 59 imposes a heavy tax, as well as fines for failure to pay such tax, on policies taken out in foreign companies by foreign owners of property in Chile; request for instructions.

541

542

543

REPRESENTATIONS TO THE CHILEAN GOVERNMENT REGARDING EFFECTS OF PROPOSED INSURANCE LEGISLATION ON AMERICAN INTERESTS-Continued

Date and

number

1927

Subject

Page

Aug. 8 (31)

Sept. 12 (129)

Sept. 14 (42)

Sept. 19 (135)

Sept. 21 (138)

Sept. 27 (47)

To the Ambassador in Chile (tel.)

Belief that protest may not be made on grounds of violation of international law; suggestion that Ambassador may wish to urge the elimination of article 59 because it would interfere with free and mutually beneficial intercourse between the United States and Chile.

From the Ambassador in Chile (tel.)

Information that Joint Committee has sent amended bill to Chamber of Deputies; understanding that foreign companies will be permitted to function, without reorganizing as national companies, on condition that they invest in easily liquidated Chilean securities or property and pay a tax on premiums 50 percent greater than the tax paid by national companies, and that article 59 has been modified and renumbered 46; request for instructions as to possible protest against the taxation.

To the Ambassador in Chile (tel.)

545

545

546

Advice that Department can perceive no good basis for a protest.

From the Ambassador in Chile (tel.)

546

Belief of most insurance agencies that the requirement of increased deposits and heavier taxes, even though discriminatory, will be offset by a large increase in business and profits. From the Ambassador in Chile (tel.)

547

Information that insurance bill will come before Senate when special session of Congress opens about October 6; request for instructions whether Department's attitude toward protest I would be affected by the legal contention that if insurance contracts on personal property can be taxed, other contracts affecting personal property, such as mortgages and assignments, can also be taxed.

To the Ambassador in Chile (tel.)

547

Advice that no ground exists for formal protest because of lack of discrimination against American firms; authorization to urge informally that the provision be eliminated because it would interfere with business between the two countries.

548

[blocks in formation]

Passage by Senate, November 16, of bill with modifications
which are reported to be acceptable to foreign companies;
amendment of article 46 to permit insurance of properties in
Chile with local branches of foreign insurance companies, or,
if the risk is unacceptable, to permit the local companies to
place the insurance abroad without being subject to tax.
From the Ambassador in Chile

Passage of bill by Chamber of Deputies, November 23, with
minor change; information that the amendment of article 46
reported in telegram No. 179, November 17, eliminated the
most harmful feature of the bili as far as the foreign companies
are concerned.

548

« ՆախորդըՇարունակել »