Office of the Historian

149. Telegram From Secretary of State Vance’s Delegation to the Department of State1

October 20, 1979, 1945Z

Secto 10006. Subject: Letter to the President of Brazil2

For Seitz from Bremer

1. As noted, Mr. Vance was not comfortable with the tone of the President’s letter to President Guevara.3 He found it too lecturing in tone and asked Vaky and Pastor to redo it. Their proposed letter, approved by Mr. Vance is below. The tone is changed; not the substance.

2. Please contact Guy Erb urgently and ask him to clear the revised language.4 No new signed original is necessary, obviously. We just need authorization to deliver Sunday evening to Guevara.

3. Begin text: Dear Mr. President: Vice President Mondale has told me of the concern you expressed to him earlier this month in Panama regarding the projected sales of tin from our strategic stockpiles.5 I have also received a thoughtful message from the Presidents of Colombia, Peru, and Venezuela, and the foreign minister of Ecuador on behalf of President Roldos following the Vice President’s meeting in Panama with the Andean heads of state.6

Let me assure you that I truly understand the depth of your concern and how important this matter is to you. It was precisely with this in mind that I have sought to find ways to take what is an essential step for us and, at the same time, meet your concerns.

Our problem is that the US strategic reserves of tin are so far in excess of the amounts required that we must reduce them. We want to do so gradually over time and without market disruption. As you [Page 455] know, there is worldwide shortage of tin production relative to demand at the present time, and world tin stocks are considerably below historic levels. These two factors have resulted in record high tin prices on the international market, considerably above the ceiling set by the International Tin Council. Under these circumstances, I sincerely believe that we can structure a properly managed, orderly disposal program extending over several years which will not cause damage to the economy of Bolivia.

I want to assure you, Mr. President, as I did President Padilla last July,7 that any future tin sales by the US government will be managed so as to safeguard against disruption of the tin market and the economic position of producers, including Bolivia. We will develop sales plans on the basis of full consultation with the International Tin Council and with the producers. In fact, I believe we should use these disposals as an opportunity to strengthen the International Tin Agreement, and I intend to use a portion of the tin which we will dispose of as the US contribution to the International Tin Buffer Stock. My administration supports the tin and other international commodity agreements in order to moderate the extreme fluctuations in price that pose difficulties for commodity exporters.

I expect that the US Congress will soon authorize the disposal of surplus tin. It is therefore important that we work together to make this an opportunity rather than a problem. I would welcome your government’s suggestions on the timing and quantities of disposals in light of current and prospective market conditions. The views of the Bolivian government, which could be communicated through either of our ambassadors, will be of great assistance as my government develops an orderly, well-managed disposal program for the coming years. I repeat that I share your concern for the effects tin sales could have, and for this reason am determined that all feasible safeguards will be taken.

Let me take this occasion, Mr. President, to reiterate that the recently initiated democratic process in Bolivia has our full support.

The gains in civilian, constitutional government which Bolivia has succeeded in bringing about are worthy of the most profound respect and praise. I believe it is in the interests of every republic in the hemisphere to do everything feasible to secure and consolidate these advances.

Sincerely,

Jimmy Carter

Vance
  1. Source: National Archives, RG 59, Central Foreign Policy File, D790481-1148. Secret; Immediate; Exdis. The telegram was sent from the Secretary’s aircraft. Vance attended the OAS General Assembly Meeting in La Paz October 20–23.↩
  2. The subject should read: “Letter to the President of Bolivia.”↩
  3. The signed letter from Carter to Guevara, dated October 19, is in the Carter Library, National Security Affairs, Brzezinski Material, Brzezinski Office File, Country Chron, Bolivia.↩
  4. In telegram 275000 to the Secretary’s delegation, Seitz informed Bremer that Katz and Erb concurred with the revisions. (National Archives, RG 59, Central Foreign Policy File, D790481-1211)↩
  5. See Document 49.↩
  6. In a telegram to Carter, October 2, Turbay, Morales Bermudez, Herrera Campins, and Parejo wrote of their “serious concern” that a sale of tin from the U.S. stockpile would mean “grave damage” for the Bolivian economy and democratization process. (Carter Library, National Security Affairs, Staff Material, North/South, Pastor, Subject Files, Vance’s Visit to La Paz, Bolivia (10/20-25/79) I, 10/79)↩
  7. See Document 146.↩