811.20 Defense (M) Chile/74a: Telegram
The Secretary of State to the Ambassador in Chile ( Bowers )
571. Your 727, December 10, 9 p.m.86 Your conclusion E: In view of the present circumstances the Department does not feel it desirable to press Chile further with respect to the division between Chile and the copper companies of the increase in the price of copper. The Metals Reserve Company has reluctantly agreed with the Department on this matter and has informed the copper companies. Therefore the Department acquiesces (as an alternative to the unacceptable copper export tax) in the proposal contained in the memorandum of the Chilean Ambassador of November 29, 1941,87 which is that any increase in the price of copper over 10 cents a pound will be divided equally between the Chilean Treasury and the producers, provided always that the Chilean Treasury receives a minimum of 1¼ cents. Thus at the offered price of 11¾ cents the producers would receive ½ cent of the price increase.