0.973.224.51 exchange of letters of 24 November 1961 between the Switzerland and Chile concerning credits granted by a consortium of Swiss banks to the Chile for the recovery of its economy on 24 November 1961, the Embassy of Switzerland in the Chile and the Ministry of Foreign Affairs of the Chile conducted an exchange of letters. The letters from the Embassy of Switzerland have the following content: translation of the original Spanish Minister, the Government of the Swiss Confederation, eager to allow Chile to increase its purchases of equipment of Swiss origin to contribute to the recovery of its economy hit by the disasters in the South of the country, has asked me to convey to your Government the following proposals on the opening of bank credits for payment of future deliveries of such goods : 1. the amount of shipments eligible for the above credits will be 20 million Swiss francs suisses.2. The competent authorities of the two countries will agree on the operations that are the subject of these credits. This agreement will be through the Embassy of Switzerland in Santiago and the Central Bank of Chile and will be recognized by the exchange of notes.3. A consortium of Swiss banks issue credits in favour of the Central Bank of Chile (Banco Central de Chile), for an amount which shall not exceed that laid down under ch. 1. To this end, said consortium and the Central Bank of Chile conclude a contract which will determine the modalities and guarantees of the credit.4. Delivery contracts for the operations provided for in Chapter 2 must be approved by the Swiss and Chilean authorities competent. By giving such approval, authorities undertake to issue all the necessary authorizations to the exe-cution of the affaire.5. In principle, delivery contracts shall provide for the payment by the Chilean buyer Swiss vendor in free Swiss francs, a. At least 10% of the amount of the contract for delivery anytime soon after the approval of the authorities mentioned in the by. 2; ETB. The balance of the value of each day of the expedition of the goods delivery, intermediate payments is not excluded.
6. for all the credits corresponding to delivery contracts provided for by the present note and approved by the competent authorities of the two countries, the Central Bank will commit, according to the form established in the credit agreement to pay the consortium of Swiss banks, in free Swiss francs and at maturity, interest and depreciation contractuels.7. For the benefit of the appropriations foreseen by the present note, delivery contracts shall be concluded closes within a period of one year after the signing of the credit agreement, this period may be extended to a common accord.8. From the day where your Excellency will confirm to me his agreement on the contents of this note, the provisions listed above constitute a system for the opening of credit that the consortium of Swiss banks agreed to the Central Bank of Chile.
I take this opportunity to renew to your Excellency the assurance of my highest consideration.
Translation of the original Spanish text Minister, in relation to the exchange of notes to this day concerning the initiation of a special credit for goods intended for the Chile capital, I have the honour to inform you that my Government is based on the idea that for the purchase of Swiss goods not included in this agreement it may result no effect disadvantageous in the context of the general policy for the import of the Government the Chile and its normal payment conditions and transfer, taking into account including the mechanical industry manufactured in series and investment goods which the depreciation period is short, which will continue to be paid according to the commercial conditions of use.
I would be grateful to your Excellency to confirm its agreement on the interpretation above.
I take this opportunity to renew to you, Sir, the assurance of my highest consideration.
State on June 10, 1997