811.20 Defense (M)/860b

The Secretary of State to the Ambassador in Chile ( Bowers )64

225. The following press announcement was issued this afternoon:

“Jesse Jones, Federal Loan Administrator, today announced that the Metals Reserve Company has contracted to purchase 100,000 tons of Latin American copper as follows:

From the Anaconda Copper Mining Company —57,000 tons
From the American Metals Company —10,000 tons
From the Phelps-Dodge Corporation — 5,000 tons
Total —72,000 tons

at 10 cents per pound f.a.s. New York on the condition that if at any time the cost of freight and insurance exceeds ½ cent per pound such excess will be borne by the Metals Reserve Company. Mr. Jones stated that the remaining 28,000 tons of copper was purchased from the Kennecott Copper Corporation at 9½ cents per pound f.a.s. Chilean ports on the condition that such portion of this copper as the sellers can furnish transportation for, the Metals Reserve Company will allow sellers ½ cents per pound for transportation, war and marine insurance, making the total cost on such portion 10 cents per pound f.a.s. New York. On such portion as the sellers are [Page 304] unable to furnish transportation for, the Metals Reserve Company will make its own arrangements for transportation at the best rates obtainable.”

Since details of the contracts have not been completed, the division of these purchases between countries is not yet certain. Chile, of course, will receive the largest amount, and consideration is being given to the producers of copper concentrates.

Hull
  1. The same on the same date as No. 151 to the Ambassador in Peru with substitution of the following for the final paragraph:

    “Since details of the contracts have not been completed, the division of these purchases between countries is not yet certain but Peru will receive proper consideration.” (811.20 Defense (M)/860a.)