811.20 Defense (M)/2407a: Telegram
The Secretary of State to the Minister in Bolivia (Jenkins)
82. Negotiations for the acquisition of the zinc and lead production of Bolivia will be begun in the near future with Mauricio Hochschild94 who is coming to this country, arriving in Washington the end of June. The Metals Reserve Company desires to acquire the entire Bolivian production of antimony. It understands that the total production is about 11,000 metric tons of 65% concentrate, that this production is largely in the hands of small miners, and that exports to Japan are presently at the rate of about 5,000 metric tons per annum, the rest being exported to the United States and Great Britain. You are requested to telegraph whether these figures are correct and whether you believe that an agreement similar to that of the tungsten agreement is feasible. In this connection the Department emphasizes that antimony is much less important than tin and tungsten. Accordingly, if you anticipate that extremely high prices will be asked by the small producers in reliance on the tungsten precedent, it is better not to begin the negotiations as the Metals Reserve Company is not prepared to pay over $90.00 per short ton of 65% concentrate at West Coast ports which is the prevailing New York rate less freight, or to enter into a contract for more than one year. It is requested that you consult with Altshuler95 and telegraph the Department your recommendation as to whether it is worthwhile to begin negotiations on these conditions.