810.651/61

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

No. 2708

The Secretary of State refers to the Embassy’s despatch no. 5070 dated November 30, 194283 concerning the failure of the Chilean Government to adopt tin conservation measures and requesting the Department to authorize the Embassy to make representations to the Chilean Government that future shipments of tin to Chile may be discontinued if such conservation measures are not adopted.

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Reference is made to the Embassy’s report no. 69 of August 14, 194285 setting forth Chile’s 1943 essential tin requirements. On page 3 it is reported that Recuperadora Metalúrgica, S.A., has been experimenting with tin refining for over four years and may be able to increase its output depending upon the result of negotiations now pending with the Metals Reserve Company. The report estimates the essential tin import requirements from the United States for 1943 at 109.4 metric tons.

Reference is also made to the Embassy’s despatch no. 4264 of August 24, 1942,85 concerning the operations of the Chilean tin smelting and refining plant, Recuperadora Metalúrgica, S.A. It is indicated that shipments have been arranged for the importation of graphite electrodes from the United States to permit Recuperadora Metalúrgica, S.A., to increase its operations in connection with its tin refining of cassiterite which is being purchased monthly from Bolivia in accordance with an authorization from the Metals Reserve Company. It was estimated that operations of the tin smelting and refining plant would produce approximately twenty-five metric tons of tin ingot per month, or at the rate of about 300 metric tons per year. In as much as this is more ingot tin than is required by Chile for the year 1943, please inform the Department if the refining operations have been successful, and if there is an excess of production of tin ingot, to what country or countries it is being exported.

If these refining operations are found to be unsuccessful and if Chile is not self-sufficient in the production of tin ingot, the Embassy is authorized to make representations to the Chilean Government that future shipments of tin to Chile may be discontinued in the event that appropriate conservation measures are not adopted by the Chilean authorities.

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