811.20 Defense (M) Chile/333: Telegram

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

105. For Graham from Metals Reserve.74 Refer your 62, January 12.75 Shall probably favor extension Chagres and Naltagua 6 months present conditions.

As we are already paying such unusually high prices for Chilean copper concentrates and copper ores, we had hoped that no further increase would be necessary. However, our minds are not closed on this subject, and we would appreciate further hearing from you on the following:

What are possibilities of increasing production through increase in price?
Considering all the factors, what price increase do you recommend?
If no price increase at all were granted, to what extent might production be adversely affected?

Please answer above questions for ores and concentrates separately. We realize that there are other considerations aside from production tonnages, but feel above information necessary as basis for action here.

Cobalt concentrates 14 to 20 percent value here around $1.00 per pound metallic cobalt content depending on other constituents, for example iron alumina contents undesirable whereas nickel and arsenic [Page 828]contents desirable. Please advise approximately full analysis and quantities available. [Metals Reserve.]

  1. Horace R. Graham, Executive Vice President of the Anglo-Chilean Nitrate Corporation, serving as a representative of the Metals Reserve Company, a purchasing agency of the Department of Commerce.
  2. Not printed; it recommended extension of contracts with firms at Chagres and Naltagua and increases in copper prices.