811.20 Defense (M) Bolivia/303: Telegram
The Secretary of State to the Ambassador in Bolivia (Boal)
536. Reference your airgram A–11 August 1, we expected that some bargaining would be necessary on the proposed quinine agreement. In your discretion, you are authorized to increase prices to $14 per kilogram for quinine calculated as sulphate, USP X, in bark which contains 3% or more of such quinine. You may then offer for bark containing less than 3% but containing a total of 3% or more of total crystallizable alkaloids out of cinchona on the basis of the amount of such total alkaloids contained in the bark as follows: 12 cents per pound for bark containing from 3% to 4% of such alkaloids, 13 cents for bark containing 4% to 5%, 14 cents from 5% to 6%, and 15 cents for bark containing 6% or more of such total alkaloids.
If these prices are not sufficient to obtain a contract, please ask Bolivians to submit firm offer on entire price structure to be relayed to us with your recommendations.
[Page 554]We believe prices for sulphate and alkaloid mass now offered are reasonable because we plan to take entire output of factory. Our reasoning is that alkaloid mass is of little value to the factory and they should accept lower quinine price to dispose of alkaloid mass at this good figure. Processing costs on mass are heavy but we expect to reduce it to other alkaloids here.
We agree annual allowance to factory is large and can only be made provided we get entire output and privilege of increasing operating efficiency. We hope ultimately to have factory produce quinine sulphate and totaquina under recent U.S. pharmacopoeia.
As regards the suggestion in your airgram A–15 of July 31,76 the Defense Supplies Corporation is giving it favorable consideration. Details of its decision will be transmitted by telegraph without delay.
- Not printed; the suggestion was that the Defense Supplies Corporation buy out the Dutch quinine interests in Bolivia (811.20 Defense (M) Bolivia/297).↩