811.20 (D) E.D.B./2391: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
153. Embassy’s telegram 246, February 5,79 and despatch 5591, January 30.80 The copper decree as presented is acceptable, but an agreement on the following is also desired at the earliest possible date:
- 1.
- We are in a position to control the sales of refined unmanufactured copper for shipment from Chile to other American Republics made by Copper Exporters and Kennecott Sales Company. The consent of the Chilean Government is desired to the exercise this control by us, having in mind that we will only permit a tonnage to be sold to equal the essential requirements of each country after deducting the amount sold by Chile in manufactured form.
- 2.
- In order to make possible the effective control of sales as outlined in No. 1 it would be helpful (a) if Chile could find it possible to limit to 4500 metric tons in each quarter the maximum allotment of base copper for Chilean consumption and exportation in manufactured form to the other American Republics and (b) in order that proper control may be maintained here it is hoped to include in the agreement which you will shortly sign (to be formalized by an exchange of notes) a stipulation that in addition to informing the Embassy in advance of all sales and exports of copper, brass and bronze, the full name and address of the buyer or ultimate consignee will be given as well as the name and address of the nominal consignee, and the amount and description of each shipment.
It is our understanding that the total annual amount which will be agreed upon is 18,000 metric tons. It would be helpful in making our plans here if the exchange of notes would provide for the submission of information to the Embassy showing the total quarterly amounts which Chile expects to ship to each of the other American Republics.
In this connection reference is made to the last paragraph on page 2 of the Embassy’s despatch no. 5591 concerning the statement by the Acting Under Secretary of the Ministry of Economy and Commerce81 [Page 830] that exports would be for essential uses and that preference would be accorded to uses contributing directly to the war effort.