825.2542/3–2654
The Secretary of State to the Director of the Office of Defense Mobilization (Flemming)1
My Dear Mr. Flemming: The Department is now in receipt of information from Ambassador Beaulac that the President of Chile and the Cabinet approve the continued prohibition of sales of copper, from whatever source, to the Soviet orbit, and a note2 to this effect has been provided. The Chilean Government has also agreed to adopt the IC/DV system as a control measure.
With respect to reasonable curtailment of production by the American producing companies, the President, the Minister of Foreign Relations and the Minister of Finance have promised to permit necessary cutbacks after April 3 if the companies are unable to reach an agreement with the mining unions before that date. The cutbacks would be in addition to the substantial cutbacks that have already taken place. These were detailed in a letter of March 233 to Mr. Wormser, a copy of which was sent to you.
The Ambassador has therefore now informed the Government of Chile, in accordance with our instructions, that the United States Government is prepared to proceed with the purchase of copper.
In pursuance of the Cabinet decision of March 12, it is requested that you authorize the General Services Administrator to negotiate at [Page 747] once with the companies a contract for the purchase of 100,000 short tons of Chilean copper for the stockpile at 30 cents per pound.
Sincerely yours,
Acting Assistant Secretary for Economic Affairs
- Drafted by Deputy Director of the Office of International Materials Policy Clarence W. Nichols and Mr. Barall.↩
- Reference is to Chilean Foreign Office note no. 3, dated Mar. 25, 1954; a copy and translation of the note were transmitted to the Department of State under cover of despatch 763, from Santiago, dated Mar. 26, 1954 (825.2542/3–2654).↩
- Not found in Department of State files.↩