103.9169 Lima: Telegram

The Ambassador in Peru ( White ) to the Secretary of State

896. For Bateman and Evans,61 FEA, from Libbey. Discussed with Minister of Finance July 6 revised draft Overall Metals and Minerals Agreement which incorporated modifications in accordance telephone conversation Evans July 4 and your letter W–Peru 2205 June 2962 with following results:

1.
Inclusive reference transfer obligations rights privileges MRC63 to USCC extant.
2.
Import duties clause acceptable with minor modification.
3.
Six months’ cancellation clause acceptable and although substantial objections clause permitting our changing prices and quantities three months’ notice believe also acceptable.
4.
Desire detailed clarification basis sliding scale or customary variations price lead ores and concentrates.
5.
Desire continuance purchase of 50% content zinc or more on f.o.b. Peru basis.
6.
Our refusal include silver and molybdenum in agreement believe disposed of satisfactorily.
7.
Refusal provide for continued purchase antimony and tungsten terminated further negotiations in view of Minister’s insistence that [Page 1525] resolutions adopted at Rio de Janeiro Conference64 made it mandatory upon United States to maintain agreed principles of cooperative mobilization resources for defense and economic warfare of hemisphere. Minister is therefore instructing Peruvian Embassy to intercede immediately for negotiations of agreement directly with proper Washington authorities.

Our letter and Embassy despatch follow. [Libbey.]

White
  1. John W. Evans, Minerals Expert of the Foreign Economic Administration.
  2. Not found in Department files.
  3. Metals Reserve Company.
  4. See recommendations 1, 9, and 16 approved at the Third Meeting of the Ministers of Foreign Affairs of the American Republics, Rio de Janeiro, January 15–28, 1942, Department of State Bulletin, February 7, 1942, pp. 118, 126, and 127, respectively.