800.6354/353: Telegram
The Chargé in the United Kingdom (Matthews) to the Secretary of State
[Received April 17—3:07 p.m.]
1924. Embassy’s Nos. 1746 and 1766, April 10.
(1) Embassy has today received from Sir John Campbell official minutes of International Tin Committee meeting held April 10 last. This gives inter alia text of Patiño’s telegraphic instructions to Pearce before meeting:
“Yours April 3rd. I did not intend contract with Metals Reserve be cancelled unilaterally being understood that Committee should negotiate with Metals Reserve to that effect. Am cabling Campbell advising you will represent Bolivia next meeting Friday, 10th. Instructions my Government are that Bolivia will be pleased renew agreement with reservations articles 4 and 14 and provided Committee come to a previous understanding with Metals Reserve that the last contract for sale of tin be cancelled, being now inoperative. This condition is sine qua non. Wording of reservation follows:
‘Bolivian Government desires to give formal notice of its reservation regarding articles 4 and 14 of this agreement to the effect that these articles shall be reconsidered as soon as the status prior to the occupation by Japanese of Malaya and Netherlands East Indies has been reestablished, when it will be possible to determine the actual productive capacity of those territories.’
I agree with liquidation buffer stock according Campbell’s note dated 18th March.”
(2) Following is text of decision taken by Committee with respect to agreement of October 9, 1941, between I. T. C. and Metals Reserve in connection with Bolivian statement:
“The Committee considered that the agreement of 9th October, 1941, and previous agreements concluded with the same object in view had now become inoperative owing to the march of events. These agreements [Page 520] were made in order to provide a large surplus of tin to be taken into stock in America. The obligations of the Committee were primarily to fix quotas suitable for the attainment of that objective, and to do their best to encourage producers in these territories to be ready sellers at the 50–cent price. Now that Malaya and the Netherlands East Indies had been overrun, the whole physical basis on which these contracts were founded had ceased to exist.
It was understood also that the Metals Reserve Company and the other interested governmental authorities in America were in fact discussing with the Bolivian authorities at present the question of a price for Bolivian tin higher than the 50–cent price mentioned in the agreement of 9th October, 1941.
In these circumstances the Committee did not desire to contest the Bolivian point of view that the contract of 9th October, 1941 (which had not yet become formally operative) should be regarded as inoperative and should be cancelled.
It was decided that the American Embassy should be approached on this subject and should be requested to place the Bolivian Government’s view, with the opinion of the Committee, before the Metals Reserve Company and to obtain as speedily as possible that company’s decision whether the Bolivian point of view was accepted by them, and by the Reconstruction Finance Corporation.”
(3) Referring to Embassy’s 1766, section 2. This would probably enable the Bolivian Government to wire instructions for the signature of the renewal agreement earlier than would otherwise be possible.
(4) Following is text of Committee’s decision covering renewal of
agreement:
The following are comments upon (a) and (b) above as recorded by Campbell in a covering letter dated April 16, enclosing minutes, states in regard to Bolivian request:
“In view of the urgent necessity of settling the position as regards the renewal of the tin agreement at the earliest possible date, perhaps you would be good enough to communicate the substance of (preceding section 2) to the authorities in America. The Committee desire, as you will see, that the American Embassy should be requested to place the Bolivian Government’s view, together with the opinion of the Committee, before the Metals Reserve Company and the other governmental authorities concerned as soon as possible; and further to learn whether the Bolivian point of view is accepted by the Metals Reserve Company and by the Reconstruction Finance Corporation. I [Page 521] suggest that it might facilitate matters materially, if the decision of these two American authorities could be communicated direct to the Bolivian Government by them, while at the same time informing us through the Embassy of that decision.
“This matter was very fully discussed and it was pointed out that such signatures, binding the four producing territories (Malaya, Nigeria, Netherlands East Indies and the Belgian Congo), did not appear to be in any way detrimental to their interests. The strong probability is that full production will be required during the period of currency of the proposed renewal agreement; and article 16 provides an escape clause which would always be open if circumstances should change, and if the non-adhesion of Bolivia should at any time prove embarrassing to the other Governments.”