811.20 Defense (M) Bolivia/47m: Telegram

The Secretary of State to the Chargé in Bolivia (Dawson)

26. Your no. 21, January 14, 5 p.m.49 Department finds little merit in Hochschild’s50 assertions and believes that prices offered in Department’s cable December 30, noon,51 are more than fair. Nevertheless, it is desired to control purchase of Bolivian antimony in this country and it is feared that a unilateral fixing of ceiling prices would defeat this end. If we are not in a position to supply the British with antimony, we can raise no objection to their purchasing in Bolivia, and this might affect prices very adversely.

It has been decided today that Office of Production Management will enforce Order M–63 so that all antimony entering this country will be purchased by the Metals Reserve Company. If British purchasing can be held off, no further definitive action will be taken until conversation with Hochschild who, it is understood, arrives here 28th. Meanwhile however, Office of Price Administration will call a trade meeting to discuss price ceiling.

The following ideas have been advanced: (1) To drop negotiations, establish ceiling prices and inform British they are free to purchase in Bolivia; (2) to inform Hochschild that ceiling to be adopted will in all probability be considerably less than offer made in the December 30 cable, but that offer still stands open for immediate acceptance; and (3) to pay the prices asked by Hochschild as described in your cable of December 18, 4 p.m.52 (it is very doubtful whether Federal Loan Agency would approve this third alternative plan).

Department is anxious to come to reasonable bilateral agreement and would appreciate any suggestions and advice you can offer in the premises.

Hull
  1. Not printed.
  2. Mauricio Hochschild, head of a firm of widespread connections, which dealt in tungsten, lead, zinc, and other commodities.
  3. Sent as telegram No. 1, January 2, 1942; not printed.
  4. Telegram No. 392, not printed.