811.20 Defense (M)/1497: Telegram

The Secretary of State to the Minister in Bolivia (Jenkins)

32. Your 34, March 22, 1941. On April 8, the Deputy Federal Loan Administrator addressed the following letter to the Minister of Bolivia in Washington:

“I confirm telephone conversation in which I advised you that we accept the offer of your Government to sell to the Metals Reserve Company the entire Bolivian production of tungsten ore for 3 years (maximum 3,500 short tons in any one year) at the price of $17 per short ton unit f.o.b. docks New York.

It is further understood, if the annual production of Bolivian tungsten during the period in question should exceed 3,500 short tons, the Metals Reserve Company is to have an option to purchase such excess at $17 per short ton unit f.o.b. docks New York.

You have advised me that your Government has indicated its willingness to give the Metals Reserve Company an option for the purchase of Bolivian production of tungsten for a period beyond the 3 years herein contemplated.

We would like to have an option for the production of 2 additional years at $17 per short ton unit f.o.b. docks New York, this option to be exercised not later than 2 years from the date of signing with your Government the contract herein contemplated.

I understand you are cabling to your Government our acceptance of its offer as above and that you will communicate to us your Government’s confirmation of the transaction as soon as received.

We will be glad to meet with you at your convenience for the purpose of preparing a contract.”

Hull