My 246. [1]

The Brazilian Embassy at Washington confirmed in writing their
readiness to establish diplomatic relations with Australia. The
Brazilian Government has not yet given agreement for Macgregor but
the Ambassador [2] insists that this is a routine matter and the
delay is due to the absence of the President of Brazil from the
capital. [3]

The Ambassador of Chile [4] has now left with me a written
communication along the following lines-
(a) Chile confirms the desire to establish diplomatic relations
with Australia.

(b) Chile is prepared to grant immediately agreement for
Macgregor.

(c) As Australia is accrediting Macgregor to Brazil and Chile
'with fixed residence in Rio de Janeiro, the Australian diplomatic
mission in Santiago will in practice be left with a Charge
d'Affaires ad interim'.

(d) As it is impracticable for Chile to reciprocate by accrediting
a Minister to Australia and another country, Chile will designate
a Charge d'Affaires to Australia.

(e) Should Australia later decide 'as is to be desired' to
accredit a Minister to Chile 'with residence in Santiago' Chile
will immediately accredit a Minister to Australia.

With regard to paragraph (c) above, when approaching the
Ambassador of Chile we did not make any reference to a fixed
residence in Brazil. Presumably Chile has seen press notices or
received a report from its Consular Representative in Australia
stating that 'headquarters' of Australian Minister would be at
Rio.

The Ambassador of Chile asked for confirmation that the
appointment of a Charge d'Affaires in Australia would satisfy the
Australian Government. Please advise.

[matter omitted]