811.20 Defense (M) Argentina/197: Telegram

The Ambassador in Argentina ( Armour ) to the Secretary of State

825. Reference Williams’ letter to Metals Reserve April 23, Department’s cable 552, April 20, 8 p.m., and Embassy’s cable 781, April 28, 5 p.m., relative beryl ore exports. Following is translation of communication received by the Embassy from the Foreign Office May 1:

“Saba on March 4 last signed a contract with Metals Reserve Company, an official institution of the Government of the United States agreeing to sell for the period of 2 years with option of a third all beryllium oxide it is able to produce to a maximum of 100 tons yearly.

A condition of this contract was that it would become effective at the conclusion of the over-all purchase agreement being negotiated between Argentina and the United States.

For this reason and in compliance with a request formulated by the Ministry of Agriculture, the Ministry of Foreign Relations takes pleasure in informing the Embassy of the United States of the interest that exists that the clause which subjects the entering into effect of the contract for the sale of beryllium oxide to the conclusion of the over-all purchase agreement be nullified.”

In Embassy’s opinion beryl ore export permits will not be granted until beryllium oxide contract with Saba is made effective, therefore it is suggested that authorization be granted to make Saba contract effective with paragraph 4 of special conditions eliminated and a clause substituted making the effectiveness of contract contingent upon the Argentine Government granting export licenses for export to the United States for an accumulated 568 tons beryl ore and agreeing to [Page 314] grant export licenses for approximately 100 tons per month with a minimum total of 1200 metric tons per year. Agreement would probably be along lines outlined in last paragraph of Embassy’s telegram No. 781 of April 28, 5 p.m.