825.24/985: Telegram

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

754. 1. Reference Department’s 443, April 23, 7 p.m.3 At a conference 24th between the Undersecretary of Economy and Commerce and the Economic Counselor, with Randall4 from Buenos Aires in attendance, the Undersecretary said Chile desires to cooperate fully with the United States in regard to copper exports but expects the United States to sympathize with Chile’s desire to export elaborated copper and encourage the industry. He said he felt proposals in Embassy’s airgram 530 of April 17 could form basis.

2. Undersecretary said he did not think there would be any objection to control by the United States of exports from Chile of refinery shapes so long as United States continued to buy all of Chile’s copper not specifically reserved by Chile for her own industry.

3. The Embassy obtained the impression from the Department’s 153 of February 11, 11 p.m., that the control by the United States of refinery shapes exports to other American Republics would be put into practice. Could not importers in other American Republics be supplied refinery shapes within requirements schedules set up by our Embassies as reduced by imports of Chilean manufactured copper? Randall states that 2165 metric tons of refinery shapes have been received in the Argentine during the first quarter of this year.

4. Undersecretary remarked that high prices paid for Chilean copper manufactures were due to buyers’ avidity to purchase.

5. Undersecretary agreed in principle to quotas for American Republics set up by United States and to United States definition of essentiality.

6. Above opinions must be discussed and agreement reached with Minister who is away during Easter holidays.

7. Consignee control in accordance with paragraphs 5 and 6 of enclosure number 25 to Embassy’s despatch 5944 of March 10 is being put into effect as rapidly as possible.

8. Shipments of 287 tons of copper wire and sheets from Chile to Argentine were approved 24th with concurrence of Randall.

9. Further report after conference with Minister.

Bowers
  1. Not printed; it made inquiry as to whether Chile would object to United States control of “sales of refinery shapes (refined, unmanufactured copper) for shipment from Chile to the other American republics” through the Copper Export Association, Inc., and the Kennecott Sales Company (825.24/984a).
  2. Harold M. Randall, Assistant Commercial Attache” in Argentina.
  3. Not printed.