The Chilean Government is sending to Australia as Charge
d'Affaires a Titre, Manuel Eduardo Hubner who will also be Consul
General. He proposes to leave here by A.T.C. within the next few
days and proper preparations should be made for his reception. His
family are proceeding by sea at a later date.

The Chilean Foreign Minister [1] has made it clear that in his
view the original plan whereby Macgregor should divide his time
between Rio de Janeiro and Santiago de Chile would not be
satisfactory in practice. The loyal support which Chile has given
us on many important questions in this Conference, the close
personal relations which I have established with the Chileans and
the possibility in future of valuable Australian exports of coal
and wheat to Chile lead me to believe that Chile may become more
important, politically and economically, to Australia than Brazil.

It will therefore ultimately be necessary to appoint a separate
Minister to Santiago de Chile. Pending such an appointment Hubner
will remain as Charge d'Affaires but the Minister for Foreign
Affairs has indicated that as soon as we are in a position to
appoint a Minister to Santiago de Chile they propose to give
Hubner Ministerial rank.

Under the circumstances it seems undesirable to seek agreement for
Macgregor as Minister to Chile. The general question of the
establishment of a Mission at Santiago de Chile can remain in
abeyance until I return to Australia but I should like your
personal reaction after full consideration. [2]