Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

835.24/2445: Telegram

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

Washington , January 4, 1944—6 p.m.

11. The United States copper position is now somewhat more favorable than when the copper agreement was made with Chile and, in an effort to remove at the earliest feasible date (so far as possible) this fetter to trade with all of its attending administrative difficulties, it is desired to terminate the copper agreement in so far as the other American republics which have broken relations with or declared war on the Axis are concerned.

When the United States requested Chile to make the copper control agreement our copper requirements exceeded supply and our future need for copper was much more uncertain than it is at present. The Department appreciated that Chile’s entrance into this agreement entailed a sacrifice on its part by limiting its exports of fabricated copper to only 18,000 tons per year when some 34,000 tons had been sold during the previous year. In an effort to alleviate this situation the Department endeavored to assure to Chile a market for its fabricated copper within the 18,000-ton limitation and made available to Chile important copper fabricating machinery which will benefit the country not only now but also in the post-war period. When the Chilean Ambassador called at the Department on December 20 the improved copper supply situation was discussed fully with him and it was suggested informally that one of the ways in which we could aid Chile in preparing for the post-war adjustment period would be relaxation of the copper agreement. Thus Chile could continue to expand its local fabricating industry and export fabricated copper in greater quantities. It might be possible even to assist Chile further in improving its copper fabricating industry, as for example through facilitating the delivery of additional equipment if needed.

While the copper supply situation is improved, it is not to be understood that copper is plentiful. It is felt, however, that this Government can now safely permit the free export from Chile of fabricated copper to all of the other American republics except Argentina. Argentina already possesses substantial commercial stocks of copper and the Department would be very loath to see additional supplies of Chilean copper sent to that country for diversion to Proclaimed List firms or to uses inimical to hemispheric security.

Please immediately explore this situation with the Foreign Minister⁹⁶ along the foregoing lines, expressing to him and to other officials with whom you speak this Government’s sincere and warm thanks for the cooperation which Chile has rendered in connection with copper control, making it clear that it has been our intention from the beginning to agree with Chile on the relaxation of the controls as quickly and as fully as possible.

In connection with this matter reference to your Telegrams Nos. 2144⁹⁷ and 2159⁹⁸ concerning a barter deal of Argentine mares for copper is pertinent.

Please maintain telegraphic communication with the Department on this matter.

Hull

96. Joaquín Fernández Fernández.
97. Dated December 23, 1943, 9 p.m., not printed.
98. Dated December 27, 1943, 5 p.m., Foreign Relations, 1943, vol. v, p. 861.