Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

811.20 Defense (M) Chile/350: Telegram

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

Washington, February 18, 1943—9 p.m.

178. For Graham from MRC. As we interpret your cablegram No. 252,⁸³ you have reported points Numbers 1 to 10 for our information and to show what the Chileans have in mind for some future general revision, but that, in so far as the remaining months of the present agreement are concerned, you feel that the revision can be limited to those particular points covered by your “definite recommendations”. If this interpretation be correct, you are authorized to alter contract for its remaining period as follows:

1. Increase price copper ores and concentrates by same amounts as in last previous revision; namely, 10 percent and 5 percent of original base prices.

2. Pay market price for recoverable silver. Think you are under misconception on this question. We are not paying other countries any fixed price but only actual market price. Price ceiling was recently raised to 45 cents, and market has remained at this figure, but price is not pegged and we cannot guarantee it.

3. Agree to definite prices for cobalt, tungsten, antimony, lead and zinc placed Chilean ports. Details these schedules too lengthy for cablegram, therefore, sending air mail. Prices will be in line with prices we are paying same materials Bolivia, Argentina and Peru but please particularly note that their terms of payment for tungsten ores and concentrates are somewhat different than those provided in Exhibit A⁸⁴ and we must insist on applying to Chilean tungsten same terms payment as Bolivia, Argentina and Peru; otherwise all of the foregoing prices are based on terms of delivery and payment provided in Exhibit A. Our supplies of antimony and lead may exceed our requirements and we will therefore wish to reserve right to limit tonnage these materials. For your information, no shipping space being allotted at present for lead ores and concentrates. Please cable us estimated production and grade, antimony and lead for period involved if this output likely to be substantial.

We approve continuance of contracts with Chagres and Naltagua on present basis for additional period of 6 months. [Metals Reserve Co.]

Hull

83. Dated February 6, 11 a.m., p. 828.
84. This appears to refer to the detailed schedule of quantities, grades, prices, etc., of the purchases of the Metals Reserve Company known as Exhibit A and attached to the exchange of notes of January 26, 1942. See despatch No. 2536, February 4, 1942, from the Ambassador in Chile, and footnote 69, Foreign Relations, 1942, vol. vi, pp. 48, 49.