811.20 Defense (M) Chile/610a: Telegram

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

6. Referring to telegram of today’s date from Scheuer to Low,90 the Department has discussed program outlined therein with FEA and agrees that since it appears likely that certain supplies of minerals and metals would exceed requirements during 1944, it is advisable to initiate steps looking toward gradual, orderly reduction in production. If such steps are not taken, the result may be a more rapid accumulation of stockpiles necessitating more drastic reductions in production on short notice which might precipitate economic disturbances too rapidly for the local authorities to cope with. The program outlined by FEA is intended to spread the strain resulting from decreasing production over as long a period of time as circumstances would permit.

Similar steps are being taken in mining areas other than in Chile. As an example, for your confidential information, purchases of copper from the high-cost Matahambre mine in Cuba are being discontinued by FEA, the mine having been given approximately 3 months’ notice. The WPB91 is also working on a program which envisages the gradual reduction of domestic production of such minerals and metals as are in over supply. This program has already been put into effect domestically on bauxite, mercury, tungsten, molybdenum, and other ferro-alloys. The program for production and reduction of non-ferrous metals has not as yet been completely worked out. We have every reason to believe that during the coming year production from domestic high-cost copper, lead and zinc mines will be reduced or eliminated.

Hull
  1. Presumably telegram 4, January 1, 10 p.m., supra.
  2. War Production Board.