Office of the Historian

811.20 Defense (M) Bolivia/1210b: Telegram

The Secretary of State to the Ambassador in Bolivia (Boal)

Washington, July 28, 1943—9 p.m.

967. In connection with the tin negotiations which are now under way between representatives of the Bolivian producers and the Office of Economic Warfare,86 the Bolivian Embassy on June 1 presented a [Page 567] memorandum87 suggesting that the following adjustments in existing tin agreements might be made:

(1)
An extension of the term of the present contract. While no definite new term was suggested, it was indicated that it might be for the duration of the war plus 2 years;
(2)
Establishment of a price of 70 cents per pound less returning charge f. o. b. South American port for the period of the new contract;
(3)
Cancellation of Clause 3, Paragraph d of the Tin Contract of November 4, 194088 or at least its amendment to permit a larger proportion of ores under 35 percent tin content to be exported to Metals Reserve Company without penalty.

These suggestions have been carefully considered by the Department and OEW. A memorandum dated July 2887 is being delivered to the Bolivian Ambassador replying to these points as follows:

(1)
expressing willingness on the part of this Government to purchase tin for at least 2 years beyond the expiration of the present contract provided agreement is reached on the other terms of the new contract;
(2)
suggesting a price of 60 cents for a period of 1 to 2 years from the expiration on June 30, 1943 of the previous price agreement;
(3)
expressing the opinion that the provisions of Clause 3, Paragraph d of the 1940 contract might more properly be strengthened rather than relaxed.

The Department’s memorandum also expresses the willingness of this Government to enter into parallel discussions looking toward the implementation of the recommendations of the Joint Bolivian-United States Commission of Labor Experts to be carried out concurrently with the tin negotiations.

Copies of these memoranda, which set forth the present positions of the Bolivian and United States Governments in regard to the tin negotiations, will be forwarded to you by airmail.

Hull
  1. Previously the Board of Economic Warfare.↩
  2. Not printed.↩
  3. For a summary of this contract, see telegram No. 42, October 19, 1940, to the Minister in Bolivia, Foreign Relations, 1940, vol. v, p. 546.↩
  4. Not printed.↩