811.20 (D) E.D.B./1885: Telegram

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

1296. Your 1663, October 8, 11 p.m., and Department’s 1207, October 10, 2 p.m. In connection with your discussions, it may be helpful to be prepared to submit a concrete program for allocation of the total tonnage agreed upon. You are authorized to agree that a total of 20,000 short tons of copper, brass, and bronze per annum, produced in Chile be allocated to supply Chile’s internal consumption [Page 73] requirements as well as exports. Allocations of the portion this tonnage for export shall be based upon the average importation into the other American Republics from all sources of copper, brass, and bronze during the three-year period ending 1939. For each of the other American republics in percentages of the total such imports were as follows:3

Country Percentage
Argentina 28.03
Bolivia .56
Brazil 31.39
Chile 4.26
Colombia 5.38
Costa Rica .78
Cuba 4.48
Dominican Republic .35
Ecuador .45
Guatemala .45
Haiti .22
Honduras 7.51
Nicaragua .22
Panama, Republic of .78
Paraguay .22
Peru 3.25
El Salvador .45
Venezuela 5.16

It may be understood, however, that variations from these percentages may be considered on the merit of each application if circumstances warrant. In carrying out this program the following specific agreements are highly desirable:

That to prevent duplication of shipments, it is necessary that the Department should be informed in advance of all exports of copper, brass, and bronze from Chile with name of buyer and consignee, amount, and description of each shipment.
That to prevent critical material from going into unnecessary inventories or speculator stocks, buyers be limited to fabricators or manufacturers.
That preferred consideration will be given to United Nations’ military requirements.
That unused allocation in any quarter shall lapse, not to be cumulative.
That Chile supply only the essential needs of the other American republics out of the proposed 20,000 ton allocation.
That tonnage agreed upon shall become effective for the first quarter of 1943 and shall be reviewed in January 1943 for continuation or revision for second quarter, 1943.

[Page 74]

Please inform the Department whether Chile needs additional copper, brass, or bronze for necessary domestic requirements now, after taking fully into consideration the necessity that Chile, as well as all of the other American republics, should eliminate all nonessential consumption of copper.

It is the earnest desire of the Department that these things be accomplished by mutual agreement. Under no circumstances are the above suggestions to be interpreted as a failure to recognize the sovereign right of the Chilean Government.

This matter is regarded as one of pressing importance. You are requested to discuss it on an urgent basis with appropriate officials of the Chilean Government and to inform the Department at the earliest practicable date of the results of your representations.

  1. For instruction to add Uruguay to this list, see Department’s telegram No. 1325, November 5, 7 p.m., p. 74.