825.6352/11–2745: Telegram

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

909. Urtel 1476 Nov 27. Dept and other Govt agencies have been discussing proposal to resume public purchase of copper until June 30, 1946 in relation to domestic needs for reconversion. Lack of appropriations prevents commitments involving subsidies beyond that date. No decision has been reached yet. Decision will be communicated to you promptly when made. All of foregoing may be communicated to Chilean authorities.

Solely for info of Embassy Dept has sent formal recommendation to OWME.54 Recommendation was that until June 30, 1946 our Govt purchase sufficient copper from producers in Chile, Peru and Mexico, after allowing for exports to other countries, to maintain production in each country at 1934–38 annual average levels. It is understood domestic agencies are planning similar recommendation for public purchases on ground that substantial purchases will be necessary to prevent domestic reconversion bottlenecks. Although no decision has yet been made it appears likely that approval will be forthcoming for total copper purchases of between 25,000 to 35,000 tons per month probably for delivery in the months of March to June 1946 inclusive. Proportion of purchases to be made from Chilean producers probably will depend on comparative prices offered by producers in Chile, Peru, Mexico, and Canada.

  1. Contained in letter from the Secretary of State to the Director of the Office of War Mobilization and Reconversion, November 23, 1945. The recommendation was based in part upon the obligations assumed under Resolution XXI of the Mexico City Conference to adopt measures that would minimize adverse consequences of economic adjustments. (800.6352/11–2345)