Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

Eisenhower Library, Eisenhower papers, Whitman file

Minutes of a Cabinet Meeting, Held at the White House, 8 a.m., July 3, 1953¹

confidential

July 3, 1953, 8 a.m.

[Here follow a list of those present (26) and discussion of domestic matters and the general Latin American policy of the United States.]

(b) Bolivian Tin Purchases—Secretary Humphrey urged that the United States make an outright grant to Bolivia which could be used for developing agriculture or other aspects of an effective economy rather than continuing to purchase low-grade tin which cannot be smelted economically. Gen. Smith warned that such a policy would create much unemployment, which would foster the growth of Communism, and he urged continued stockpiling of tin. Gov. Stassen suggested that tin purchases be continued for one year while other more effective programs could be developed.

It was agreed that (a) purchase of Bolivian tin should be continued for one year to the amount of 10,000 tons,² (b) MSA should be prepared to undertake a solution of the Bolivian economic situation at the end of that period; (c) the decision on purchasing tin after the one year should remain open for further discussion; and (d) the establishment of a study team and other projects agreed upon at the meeting with the President on July 2nd³ should be carried out.

[Here follows discussion of additional matters unrelated to Bolivia.]

1. All Cabinet officers or their representatives were present at the meeting; Under Secretary Smith represented the Secretary of State. These minutes are signed by Cabinet Secretary L. Arthur Minnich.
2. A 1-year contract for the purchase of Bolivian tin was signed on Sept. 23, 1953, retroactive to Mar. 1, 1953 (824.2544/9–2953).
3. No memorandum of the conversation at the referenced meeting was found in Department of State files. A memorandum by Mr. Mann to Under Secretary Smith, dated July 2, 1953, indicates that the meeting was called to consider a recommendation by Mr. Flemming that a new tin stockpile be started, with purchases from Bolivia and other sources during a period of three years, and that the Texas City smelter be dismantled (711.63/7–253). In telegram 5, to Quito, dated July 3, 1953, for Dr. Eisenhower and Mr. Cabot, Acting Secretary Smith stated in part that at the meeting, attended by Messrs. Humphrey, Dodge, Cravens, Flemming, and Waugh, “tentative decison taken not to buy any tin concentrates because of domestic fiscal situation.” He further stated that this decision was reconsidered by the President and the Cabinet on the morning of July 3. (120.220/7–353)