825.24/1671: Telegram

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

12. 1. The copper limitation agreement92 was negotiated in good faith by both parties at a time when it was believed by both parties [Page 706] here that the exigencies of the war required a maximum of copper for the Armed Forces of the United Nations. Reference is made to the Department’s 1351, December 31, 2 p.m.94 The Chilean Government so far as we are aware has adhered to the agreement in spirit and letter. Any move made by us at this time to change the agreement might serve to convince the Chileans that our policy here is determined by the expediency of the moment. Moreover it is likely that the Chileans may wish to have the agreement revised or canceled as a result of the desire of the United States to ease [apparent omission] on copper purchases as indicated in Department’s 4, January 1, 10 p.m.; therefore we may reasonably await initiative on the part of the Chileans for modification of the agreement.

2. Perhaps the greatest advantage of the agreement from our point of view has been a voice in the control of copper exports to Argentina. It is our rough estimate that at least 3000 tons of copper and possibly double that amount would have been exported to Argentina during the past 9 months had it not been for the agreement and for the consultative agreement which preceded it. The Chilean Government is undoubtedly under considerable pressure to export copper to Argentina, both from Argentina sources and from local, political and other sources animated solely by the huge profits in the business.

3. Decree for despatch of 545 tons has been in the hands of the President for 8 days and will probably be signed on January 5.

4. The heading of the Department’s 1351 indicates that operational features of the copper limitation agreement are to be turned over to FEA representative in Santiago. Please instruct by return cable95 as Economic Counselor here leaving for Washington end of month and wishes to effect turnover before departure if turnover is to be made.

Bowers
  1. For terms of the agreement, see note from the American Ambassador in Chile to the Chilean Acting Minister for Foreign Affairs, August 11, 1943, Foreign Relations, 1943, vol. v, p. 851.
  2. Not printed.
  3. See infra.