825.6374/1161a: Telegram
The Secretary of State to the Ambassador in Chile (Culbertson)
27. Please call upon the Minister of Foreign Affairs and, without leaving anything in writing, say to him the following:
[Page 192]That as the Minister knows your Government has heretofore expressed its very earnest hope that the Chilean Government would take appropriate steps to restore an atmosphere of mutual confidence for the resumption of discussions between all interests in the Cosach in an effort to arrive at a solution equitable to all concerned. Your Government was pleased to learn that negotiations to effect a satisfactory solution of the Cosach problem were again under way. In this connection, representatives of the principal creditor interests have recently called at the Department of State and have pointed out that in these negotiations they cannot be expected to agree to the elimination of their contractual guarantee, which in their view is unquestionably valid and founded in Chilean law, unless it is replaced by an adequate substitute. They have reiterated their desire to reach, in collaboration with the Chilean Government, an equitable and mutually satisfactory settlement of the difficult Cosach problem. Your Government sincerely hopes that this may be done and trusts that the Chilean Government will continue to cooperate to that end with the American interests concerned.
The foregoing, of course, is not to be regarded as a reply to the Chilean aide-mémoire of April 3, the question of a reply to which we are holding in abeyance for the time being. We feel, however, that the oral and informal action indicated above may be helpful at the present time in contributing to a friendly and satisfactory settlement.