825.24/984: Airgram
The Ambassador in Chile (Bowers) to the Secretary of State
[Received April 26—4 p.m.]
A–530. Reference is made to the Embassy’s telegram No. 634, April 3, 12 noon,1 in regard to the Department’s 383, April 1, 10 p.m. The [Page 839] matter of bringing the exports of copper, bronze and brass from Chile to the other American Republics within the schedules of requirements of those Republics as determined by the American Embassy located therein was taken up with the Ministry of Economy and Commerce. The Ministry has now put forth the suggestions given below, which the Embassy transmits for the Department’s early consideration and comment thereon:
- 1.
- The Government of Chile agrees that the exportation of refined and elaborated copper as well as that of bronze and brass to South American countries shall not exceed the quotas for copper which have been fixed for the essential necessities of those countries.
- 2.
- Within the quotas which the Government of the United States may assign to South American countries shall be included the exportable excess of elaborated copper which Chilean industries may be in condition to export to those countries.
- 3.
- It is considered that actually it is possible to count on an excess of at least 12,000 tons annually of elaborated copper in the form of plates, wire, tubes, bars, etc. of different thicknesses and diameters.
- 4.
- There exists an agreement with the Anaconda Sales Company, to which the Chile Exploration Company is subsidiary producer of electrolytic copper, the only type in demand in South American countries, which establishes that all the exportations of this Company to said countries shall be effected conditionally, pending authorization by the Ministry of Economy and Commerce.
- 5.
- Consequently it would be easy, when once the Government of the United States shall have fixed the contingent for a given country, for the Government of Chile to determine the quota of elaborated copper which it would be in condition to export, according to the necessities of that country as to dimensions, grade of elaboration, etc. and to authorize the exportation of the refined metal up to the concurrence with the contingent which shall have been fixed by the Government of the United States for the country in question.
- 6.
- It is important to point out that in the arrangement of this system of provisioning of copper for the South American countries, the Government of Chile would undertake, on its part, the negotiations for obtaining the acceptance of the new conditions on the part of the receiving countries.
If there are any other phases of the copper situation which the various agencies of the United States do not like, it is suggested that they be brought together in one document and forwarded to the Embassy as soon as possible so that they can be discussed at one time with the Chilean authorities in an endeavor to iron out the entire copper situation to the satisfaction and best interests of all concerned.
- Not printed.↩