Memorandum by Mr. James Espy of the Division of North and West Coast Affairs to the Assistant Secretary of State for American Republic Affairs (Braden)

Mr. George Jewett informed me today that at a meeting with Señor Ricardo Martinez Vargas, the Ambassador-Designate of Bolivia, a final agreement has been reached on the new tin contract. There was no change in price. The base price will be 62½ cents, smelter credit 1½ cent, adjustment in deductions amounting approximately to 0.5¢ [Page 395] and a bonus of 1 cent for the first six months of this calendar year and 3 cents for the last six months. It was agreed however, that a full bonus would be paid for 90% rather than 100% of the 1944 production: that is, for approximately 17,600 tons as against 19,600 tons. ¼ cent bonus will be paid at 85% of the 1944 production figure and for each additional 1%, 15%. The bonus is to be paid on the basis of the total production of the entire group of producers selling to this country rather than on that of each individual producer.

James Espy