825.24/519: Telegram

The Secretary of State to the Ambassador in Chile (Bowers)

744. Your 1007, June 19. The problem you present has arisen in other countries where vital mines are operating. Recognizing the viewpoint you express, the Office of Exports has not required and is not requiring Certificates of Necessity for export applications for materials going to mines enjoying mine serial preference ratings.

The Projects Division of the Board of Economic Warfare is attempting to obtain and break down the requirements of the strategic mining companies as apart from other industrial requirements for other allocated commodities. Such a separation cannot be accomplished before the fourth quarter at which time it is contemplated that the quarterly allocations announced will be net allocations available to the industries in Chile distinct from the requirements of the mining companies.

For the first, second and third quarters, however, all shipments of allocated commodities to the mining companies are charged off to the allocations which were announced for those quarters. This charge off will obviously not be satisfactory to the Junta but the production situation here makes it necessary. In explanation to the Junta please [Page 91] inform it that the agencies are cognizant of the problem involved and that it is hoped a solution will be worked out for the fourth and subsequent quarters.