811.20 (D) E.D.B./1535: Telegram
    The Secretary of State to the Ambassador in Chile (Bowers)

                            WASHINGTON, August 18, 1942-11 p. m.
   922. Your 1314, August 14 [17].  You are authorized to proceed on
 the basis outlined in your 1241, July 31. Anaconda people here advise
 that they have been informed Chilean Government wishes to purchase
 amounts available for export to other American republics (other than
 this country) and sell them directly. This approach is obviously
 attractive to the Chilean authorities, since it gives them an oppor-
 tunity for a profit and also gives them basis for bartering for scarce
 materials from the other countries. While it would be greatly prefer-
 able to eliminate this transaction, you are authorized to consent to
 such an arrangement if necessary for an agreement. In the event
 Chile seeks an excessive price from the other republics, matter could
 be called to attention of proper Chilean authorities asking that rea-
 sonable price be maintained.
 It is important that you continue to stress the serious shortage of
 copper and the urgent need of keeping to the absolute minimum both
 Chilean consumption and exports to the other republics; diversion
 from direct war effort would be impossible to justify.
 The Embassies at Rio de Janeiro and Buenos Aires have been told
 the current rate of exports from Chile to Brazil and Argentina and
 asked whether such amounts are necessary for indispensable needs.
 You will be advised of replies. It is believed here that any more care-
 ful study could not be completed in time to present an early settlement
 of this important problem.
 Metals Reserve suggests that Graham participate in these discus-
 sions so that it may be fully informed upon his arrival, and that you
 may find Miller helpful in that connection after Graham's departure.
                                                             HULL
811.20 (D) E.D.B./1535: Telegram
   The Secretary of State to the Ambassador in Chile (Bowers)

                             WASHINGTON, August 25, 1942-10 p. m.
  956. Department's 922, August 18. Please advise status of discus-
sions. It is believed particularly desirable that Graham be fully in-
formed in order that he will be in a position to discuss matter upon his
arrival.
  Following telegram has been received from Buenos Aires:
  "Official statistics show average annual imports of 12,092 short tons
of copper brass and bronze manufactured and unmanufactured from

   Not printed.



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CHILE