64. Telegram 155286 From the Department of State to the Embassy in Bolivia1
155286. Subject: Letter From the President to President Banzer on Tin Disposals.
1. Please pass following letter from the President to President Banzer:
Quote August 6, 1973
Quote Dear Mr. President
Quote As you will recall from my letter of June 4, 1973, following consultations with Bolivia and other tin producing countries I authorized the sale of 1,500 tons of tin from the United States strategic stockpile during the last month of fiscal year 1973 and the sale of an additional 5,000 tons during the first six months of fiscal year 1974. Demand for this tin has been almost unprecedented. The 1,500 tons sold without difficulty and the 5,000 tons, which we anticipated selling over a six-month period, was disposed of within the first fifteen days of July.
[Page 187]Quote Despite these prompt sales, tin market prices have continued to rise, reaching record highs on both the London and New York markets. Indeed, many observers believe prices at the current levels, if sustained, will hasten the substitution of tin-free steel and other metals for tinplate, a development that would threaten the interests of producing countries.
Quote Because of these developments and because the United States has an interest in market stability, I have directed the Department of State to begin consultations with all tin producing countries regarding a further increase in our disposal program for the current fiscal year. You may be certain as I assured you in my earlier letter, that in directing this undertaking I wish to avoid any undue disruption of the world market, as well as any action that would harm Bolivian interests or damage relations between our two countries. I can also assure you that we will begin an immediate review of our revised disposal program, should tin prices drop precipitously from their present record levels.
Quote I continue to look forward to meeting you and Mrs. Banzer in Washington later this year.
Quote With warm personal regards, Sincerely, Richard Nixon
Quote General Hugo Bánzer Suárez, President of Bolivia, La Paz, Bolivia Unquote
2. Cable Immediate when message delivered as Dept intends begin consultations with producer Embassy reps on Aug 8.
3. Original of President’s letter follows by pouch.
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Summary: The Department sent the Embassy the text of a letter from Nixon to Banzer concerning consultations with tin-producing nations over increased stockpile sales.
Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential; Immediate. Drafted by Meyers (text received from the White House on August 6); cleared by Fisher in ARA/BC and by John Ingersoll in EB/ICD; approved by Katz. Repeated to London. Nixon’s June 4 letter is ibid., Nixon Presidential Materials, NSC Files, Box 749, Presidential Correspondence, President Banzer, Bolivia, 1971–1974. On September 7, the Department informed Bolivian Ambassador Valencia that the U.S. Government would begin sales on September 10. Valencia noted that the U.S. Government’s action seemed to reflect its sincere desire to avoid a deleterious impact on the economies of Bolivia and other tin-producing nations. (Telegram 179280 to La Paz, September 10; ibid., RG 59, Central Foreign Policy File, [no film number])
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