811.20 (D) E.D.B./2188: Telegram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received December 18—4:50 a.m.]
2197. Copper Negotiations. Department’s 1334, November 6, 8 p.m. and reference messages. British “replacing MacLean departed”.9 Graham, Cotter and May10 conferred with Minister of Economy and Commerce11 and his Under Secretary and assistants today on a draft presidential decree. Chileans were unwilling apparently to limit 1943 local manufactures for domestic consumption and export to 1,500 metric tons monthly although figure over double 1942 consumption. They were unwilling to state in decree the prerequisite requirement that exporters indicate ultimate consumer “because of internal political reasons” but Minister agreed to institute such requirement and so inform the Embassy by letter. Other desired export data included in decree. In general, decree seems acceptable. Percentages in Department’s 1296, October 28, 8 p.m. have been dropped from discussion but might be revived if Department desires. Further discussions will be held.
[Page 79]It developed that Argentine Ambassador has recently requested 1,500 tons of electrolytic copper for essential Argentine Army uses. We pointed out large stocks in Argentina. Chile will probably reply agreeing to supply manufactured copper. It seems apparent that Chile hopes for a considerable extension of export business now so favorable to manufactures here because of price differentials and that is the real reason behind desire not to state limit of 1,500 metric tons monthly, which they probably hope to exceed as the year advances.
Repeated to Buenos Aires by air mail.