811.20 Defense (M)/1222a: Telegram

The Secretary of State to the Minister in Bolivia (Jenkins)

12. The British and Bolivian Governments are evidently engaged in negotiating an agreement regarding the exportation of Bolivian tin to the United Kingdom. In this connection they have submitted the following clause for comment by the Department:

[Here follows the quotation in the British Embassy’s memorandum of February 14, printed supra.]

The foregoing clause is entirely acceptable in principle to the Department as closely paralleling the similar clause in the United States-Bolivian tin agreement. Before replying, however, the Department desires certain factual information as to the formula suggested which uses exports in the 12 months ending June 30, 1941 as the base period. This is the first full year of the United States-Bolivian tin contract but the Department understands that because the agreement was retroactive for a part of the period, some of the small and medium producers continued to ship to the United Kingdom until approximately January 1, 1941. The Department would therefore like to receive your opinion as to whether for the 12 months in question Bolivian tin exports to the United Kingdom will be substantially in the ratio which was envisaged when the United States contract was concluded—i. e., that slightly over half of total Bolivian exports would move to the United Kingdom.

Reply is requested as promptly as possible.