811.20 Defense (M) Bolivia/219

The Bolivian Ambassador (Guachalla) to the Secretary of State

Excellency: I refer to the conversations between our two Governments regarding the amendatory contract68 entered into today by Metals Reserve Company, an agency of the Government of the United States, providing, among other things, for an increase in the basic price paid by that Company for tin purchased from Bolivian tin producers, under the five-year contract signed on November 4, 1940. The increase in price is designed to compensate the producers for increased costs in production and to stimulate the production of tin in Bolivia.

In view of the purpose of the increase in price, I wish to confirm that during the remaining life of the contract of November 4, 1940, as so amended, the Bolivian Administration, in keeping with the established policy of fostering the development of the mining industry of Bolivia, will use its best efforts to the end that the tax and other related policies of the Government of Bolivia will not be so applied as to eliminate or weaken the stimulus to the production of tin which the increased price under the revised contract is designed to insure, and consequently that the Bolivian Administration will use its best efforts to the end that the Government of Bolivia will not by such [Page 548] policies cause a modification under the increased price of the percentages of the sales proceeds which go to the Government and the tin mining industry respectively under the existing price.

The amendatory contract also provides for the purchase by Metals Reserve Company of the entire Bolivian production of tin ore and concentrates (less the quantity thereof sold for export to buyers in the United Kingdom) up to a total of 30.000 tons per year, as more fully set forth in the amendatory contract. I have the honor to confirm that the Government of Bolivia will adopt all measures necessary during the remaining term of the contract to limit the export of tin from Bolivia to the United States or to the United Kingdom except for the export of not exceeding twenty-five tons of fine tin monthly to Chile and except as otherwise be agreed upon between the Government of Bolivia and the Government of the United States.

I am happy to assure you that the Government of Bolivia will use its best efforts to cause the maximum possible production of tin to be attained in Bolivia during the term of the contract and to that end, in accordance with existing legislation, it will encourage the improvement of wages and living conditions of the workers in the mines.

In view of the mutual economic advantages of the contract of November 4, 1940, as amended, I have the honor to inform Your Excellency that my Government fully approves this contract and guarantees the fulfillment of its terms on the part of the various Bolivian signers thereof.

Duly authorized I have added my signature to that of the producers of Bolivian tin in representation of the Banco Minero de Bolivia, Government agency that represents, according to law, numerous small enterprises in their relations abroad.

Likewise, I beg to inform Your Excellency, that the following individuals have been invested with due authority to negotiate the terms of and to execute the contract entered into on today’s date: for Compagnie Aramayo de Mines en Bolivie, Mr. Carroll A. Wilson, its representative; for Compañía Minera de Oruro Group, Mr. Mauricio Hochschild, its agent; for Compañía Minera Unificada del Cerro de Potosí, Mr. Mauricio Hochschild, its President; for Asociación National de Mineros Medianos, Mr. Jorge E. Zalles, its representative.

I avail myself [etc.]

Luis Guachalla
  1. English text not printed; for Spanish text, see Boletín Oficial del Ministerio de Relaciones Exteriores, No. 10, May–December, 1942, p. 99.