825.5151/629: Telegram

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

233. Reference Department’s 188 of July 4 and previous. The Department is informed that because of the lack of shipping to transport copper concentrates and ores from Chile to the United States certain American companies are about to disband their organizations in Chile for the purchase of these concentrates and ores. This necessarily increases the amount of these materials available for disposition to undesirable destinations. Accordingly, and despite the pendency of the problems which are referred to in the Department’s 188 of July 4 and the Embassy’s 288 of June 30, it seems desirable to press urgently for the acceptance of the proposal set forth in the Department’s 175 of June 28 whereunder Metals Reserve would buy the exportable surpluses of Chilean copper concentrates and ores, cobalt, molybdenum, mercury, lead concentrates, manganese and antimony. Therefore, unless it is your belief that the prospect of reaching an agreement with the Chilean authorities is most unlikely, the Metals Reserve Company proposes to instruct Graham69 (see Department’s 169 of June 2570) or his assistant Miller to communicate with you at once for the purpose of carrying out negotiations in collaboration with you for an overall agreement along the lines set out in the Department’s 175. Will you telegraph the Department if this proposal meets with your approval?

The British Embassy has advised the Department that the British Government proposes to offer to purchase the entire exportable surplus of wool in Chile. The British Embassy has suggested that it might be desirable to present the two buying programs simultaneously, with the possible effect of their reinforcing each other. You are requested to consult with your British colleague and to coordinate the two offers in so far as may seem desirable.

For your information, the Department is now discussing as a matter of urgency, an improvement in the price paid for Chilean refined copper.

  1. H. R. Graham, representative of the Metals Reserve Company in Chile.
  2. Not printed.