811.20 (D) E.D.B./1668: Telegram

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

1393. Department’s 956, August 25, 10 p.m. Commercial Attaché81 and Graham have discussed with Minister of Commerce the proposals based on Embassy’s 1241, July 31 which were presented to Foreign Office in note August 20. Minister appreciates importance of agreement [Page 65] fixing quantity copper which American companies will supply both for domestic consumption and for export from Chile in fabricated form. He emphasized that Chile’s only desire is to fabricate its copper in its own plants and that to the extent that is possible imports by Argentina and Brazil from other sources should be reduced so no increase in total consumption would result. Minister stated however, that Colonel Lord gave definite assurances he would send expert from the United States to make necessary studies and he has asked Chilean Embassy by telegraph to request that this be done. He was surprised and somewhat concerned with statement that no more copper needed from Chile this year by Argentina which has been principal export market. Minister pointed out that situation had been complicated because of Government’s inability to obtain any satisfactory response from American companies particularly Anaconda. Problem will be discussed further when Chilean Embassy’s reply is received.

Regarding proposal that Embassy be consulted before American companies accept orders and before Government issues export permits, Minister of Commerce stated reply would have to come from Foreign Office with which Embassy is taking up matter.

To relieve pressure temporarily Anaconda has agreed to accept orders approved by Chilean Government up to 1,000 tons.

Bowers
  1. H. Coit MacLean.