811.20 Defense (M) Chile/237: Telegram

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

1293. For Bridgman from Miller.78 Reference telephone conversation Irwin Miller.

We calculate there should be delivered during remaining year contract approximately 66,000 tons copper ore and 78,000 tons copper concentrates both including material now going direct to local smelters. Roughly average cost ore per short ton $14.50 and for concentrates $52.50 based on present contract terms for copper content. With these figures you can calculate effect increase in prices on whatever percentage basis involved. In addition we calculate $265,000 broken down as follows:

Approximately $50,000 involved in reduction refining charge copper contained gold ores and concentrates.
Approximately $125,000 elimination sack charge.
Approximately $50,000 elimination freight differential material direct to local smelters.
Probably maximum involved acceptance 60 grams gold copper concentrates $40,000.

  1. Representative of Metals Reserve Company.