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

2674. Your 2803 of May 20. It still seems to the Department unnecessary for Metals Reserve to take any position as to the cancellation of the October 9 contract with ITC. The proposed contract between Metals Reserve and Bolivian producers will provide for the price to be paid for the period of the contract, regardless of the status of the October 9 agreement. It is therefore difficult to see any basis, legal or otherwise, for claiming that pressure could later be placed on Bolivians for a reduction in price.

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Accordingly you are requested to inform the Committee that Metals Reserve is unable to see the connection between the cancellation of the October 9 contract and the Bolivian acceptance of the international tin agreement.

The foregoing is not intended to indicate any position with respect to a further institution of the international tin scheme, but the Department is unable to see the logic of the Bolivian position as stated by you.

Hull