811.20 Defense(M) Ecuador/91f: Telegram

The Secretary of State to the Ambassador in Ecuador (Long)

241. Since the arrival of Miller in Washington two meetings have been held at the BEW to discuss remedies for the difficulties which have arisen in the balsa purchase program. These meetings were attended by representatives of the British Eaw Materials Mission, and the Department in addition to BEW officials. Jackling13 also attended.

Although certain details require further study the plan that has been generally agreed to is as follows: [Page 288]

(1)
The BEW through Defense Supplies Corporation will purchase lumber directly from the producers.
(2)
The six agents will continue to function as before.
(3)
A premium will be offered for aero-grade lumber by Defense Supplies Corporation.
(4)
BEW through Defense Supplies Corporation will undertake to purchase equipment and parts, such as saw teeth and furnish them to the independent mills.

The revised program is designed to meet the primary objection of the independent producers by providing them with a steady market for lumber at fair prices. The actual schedule of prices to be paid is one of the details still to be worked out. It is hoped, however, that the program will be ready to be put into effect by April 15.

You will be informed as soon as there are any further developments.

Hull
  1. Presumably Roger William Jackling, Second Secretary of the British Embassy.