811.20 (D) E.D.B./1974: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
1334. The Department’s 1296, October 28, 8 p.m. and your 1849, October 30, 11 p.m.7 A meeting was held in the Department on November 4 with the participation of Horace Graham to discuss the Chilean copper export and internal consumption problem. The Department does not desire to present to the Chilean Government any formula which might offend their sensibilities or lead them to believe that we are endeavoring to encroach on their rights by spelling out to the last detail what we feel it is desirable in the interest of hemispheric security to achieve. Although it is considered essential that copper availabilities be conserved to the optimum degree possible and as a corollary to this that shipments not be made to countries where sufficient stocks already exist (such as Argentina, where 8,000 tons are apparently now in the hands of speculators) or where the supplies would be dissipated, some plan of distribution must necessarily be incidental to any orderly treatment of the problem. Consequently, please consider the percentage figures given in the Department’s 1296 not as final and binding but rather as informative and as couched to form the basis of discussion for the achievement of a formula which would be mutually acceptable.
In Graham’s estimation (and the Department agrees with him), the 20,000 short ton figure is an eminently fair and just one and one which the Chileans should be willing to accept. Consequently, unless you perceive controlling reasons to the contrary, it is preferred that you adhere to this over-all figure. Nevertheless, the Department would be willing to go along with reasonable adjustments in the breakdown percentage figures.
The Department wishes to make it clear that the 20,000 short ton figure is not considered to be the amount which will supply all South [Page 77] American needs, but rather simply the amount which Chile would contribute toward the satisfaction of those requirements, including Chilean requirements.
It is thought that, if the Chilean Government would agree to a formula which would in general approximate that given in the Department’s 1296, our ends could be satisfactorily achieved. However, it is essential that we know in advance what shipments are anticipated and to what countries in order that adjustments may be made on shipments from this country. Consequently, it is hoped that you will be able to convince your Chilean friends that the Embassy should be informed when shipments are contemplated in order that you may inform the Department. Please explain to the Chileans that we quite understand that we have no right to demand that such reports be made but that we would consider it a friendly and cooperative gesture in keeping with Chile’s expressed desires to render all possible assistance in continental solidarity and security.
The Department wishes to make it clear that this telegram and previous telegrams on this subject are intended as suggestions looking to the achievement of the ends we seek and not as final proposals which preclude deviation. Our desire is to (1) limit Chilean internal consumption and exports to 20,000 short tons; (2) provide a workable export control; and (3) provide this Government with sufficient advance notice of shipments. If you are able to evolve with the Chilean authorities an alternate formula along these lines, and provided the one already suggested is not acceptable, please inform the Department.
- Latter not printed.↩