Eisenhower Library, Eisenhower papers, Whitman file
Minutes of a Cabinet Meeting, Held at the White House, 10:05 a.m., March 12, 19541
[Here follow a list of those present (25) and discussion of matters unrelated to the purchase of Chilean copper.]
Purchase of Chilean Copper—Dr. Flemming reviewed the Defense Mobilization Board consideration of a proposal for purchasing 100,000 tons of Chilean copper at the prevailing market price provided the Chilean Government agrees not to sell copper to the Soviet Bloc. He placed before the Cabinet the question as to whether the US should, before making the agreement, insist upon passage by the Chilean Government of legislation eliminating economic practices which jeopardize American investments in that country.
Gen. Smith favored completion of the agreement prior to passage of the legislation so as to avoid any charge of pressure on the Chilean Legislature. Asst. Sec. Wormser noted the dependence of the US on Chile for copper. Sec. Humphrey agreed with Gen. Smith even though he disliked many aspects of the proposal and he urged care to prevent the development of any similar situation in the future where the US would have great need for Chilean copper.
In a discussion of the impact of the agreement on domestic copper producers. Gen. Smith noted that the action would tend to support the price at home and Mr. Flemming pointed to current improvement of the domestic copper situation.
It was agreed that the purchase should be carried through without insistence upon the Chilean legislation.
[Here follows discussion of other matters.]
- Under Secretary Smith represented Secretary of State Dulles at this meeting. The minutes are signed by Cabinet Secretary L. Arthur Minnich.↩