825.6374/1174: Telegram
The Ambassador in Chile (Culbertson) to the Acting Secretary of State
[Received 11:45 a.m.]
80. Referring to Department’s telegram 33, June 24, 3 p.m., seventh draft cabled New York latter part last week does not differ fundamentally so far as American interests are concerned from fourth draft. However, eighth draft which will be available this afternoon establishes a preference with regard to the distribution of the proceeds of the sale of nitrate stocks in Chile in favor of holders of unsecured frozen indebtedness with a preference among themselves in favor of the Bank of Chile. In other words it gives these interests a mortgage on nitrate stocks in this country. This draft will be telegraphed to New York and you will receive complete text of latest draft tomorrow. The measure may be sent to Congress this week where the tendency will continue to make changes prejudicial to American interests. It may become necessary for us to adopt a firmer attitude through diplomatic channels in order to protect American interests.