The British Embassy to the Department of State

Bolivian Tin Ore Contract

Negotiations between the British and Bolivian Governments for supplies of Bolivian tin ore now seem to be approaching finality and [Page 478] the text of a draft agreement will shortly be telegraphed to La Paz. In the agreement it is proposed to insert a clause reading as follows:—

“The Government of Bolivia undertakes to ensure that, if the export quota of Bolivia under the International Tin Restriction Scheme20 is reduced below the level of 130 percent at present ruling, then the tonnage of tin metal in the ore to be made available for export from Bolivia to the United Kingdom shall bear the same proportion to the total exports of tin metal permitted to Bolivia under the International Tin Restriction Scheme as exports to the United Kingdom bear to the total Bolivian exports during the twelve months ending June 30, 1941.”

It is believed that this clause is in accordance with the understanding of the British Embassy with the State Department and the Metals Reserve Company, and with the intention of Article 2 of the Metals Reserve Company’s contract with Bolivian producers,21 but the British Government would be glad to have confirmation of this before telegraphing text of the agreement to La Paz.

It would be appreciated if the Embassy could be enabled to reply to this enquiry urgently.

  1. See vol. i, pp. 507 ff.
  2. Contract not printed. Copies were transmitted to the Department by the president of the Metals Reserve Company with letter of November 4, 1940, Foreign Relations, 1940, vol. v, p. 546.