Foreign Relations of the United States: Diplomatic Papers, 1942, General; the British Commonwealth; the Far East, Volume I

800.6354/357: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

London, May 20, 1942.
[Received May 20—5:19 p.m.]

2803. Embassy’s 1924, April 17 (section 2 and 3) and No. 2590, May 12. Department’s 2067 and 2201, 11th and 16th, respectively.

1. There seems to be some misunderstanding with respect to Campbell’s request. He has not asked that pressure be placed on Bolivians. What he states he needs in order to persuade Bolivians to renew international tin agreement is acquiescence on part of Metals Reserve and RFC⁹ and BEW¹⁰ with Bolivians’ request that October 9, 1941, contract of Metals Reserve with ITC be considered as cancelled if and when International Tin Agreement renewed.

Difficulty is that Bolivians according to Campbell absolutely refuse acquiescence in any renewal tin agreement unless this assurance is given.

2. From this end the hub of difficulty appears to be that Patiño fears that when tin agreement renewed and Metals Reserve–ITC October 9 contract comes automatically into effect this could mean that Metals Reserve might claim that new price arrangement now being concluded with Bolivians was no longer effective. It will be recalled that October 9 contract stipulates a 50 cent price and as this contract antedates any present agreement to increase price to be paid to Bolivians, Patiño probably thinks it might possibly be utilized as a means to put pressure on Bolivians later for a reduction in price.

At moment of course October 9 contract not in effect and therefore there is no contractual barrier to present plans for increasing price for Bolivian tin.

3. Reference to Embassy’s 1924 sections cited will show that ITC is agreeable to formal cancellation of October 9 contract. In fact at last meeting of ITC, April 10, Committee requested Metals Reserve to accept Bolivian point of view with respect to cancellation of October 9 contract. It is this reply from Metals Reserve that Campbell seeks and Embassy would therefore appreciate instructions as to what may be said to him.

4. Notman of Harriman Mission¹¹ concurs with above.

Winant

9. Reconstruction Finance Corporation.
10. Board of Economic Warfare.
11. Arthur Notman, member of the Mission of Economic Affairs, American Embassy, London, of which W. Averell Harriman was in charge as personal representative of the President with rank of Minister.