811.20 Defense (M)/2829: Telegram

The Ambassador in Colombia ( Braden ) to the Secretary of State

327. For Finletter.67 Reference our telephone conversation August 1, Foreign Office and Office of Control have no knowledge of credits for platinum having been canceled. Please telegraph me immediately if notice of cancellation has been given by three New York banks. Otherwise Foreign Office will have to permit Office of Control authorize export permits.

Commercial Section of Foreign Office also informed the Embassy that consideration is being given to inducing [introducing?] a bill subjecting platinum to the same restrictions as gold, i. e., making the Bank of the Republic the only buyer. However, it was unofficially pointed out that such a law would have little effect unless Metals Reserve Company were prepared to pay a higher price than $36 an ounce as Japanese have been offering up to $42 and such prices would inevitably lead to widespread smuggling. What are the Department’s ideas in the premises?

  1. Thomas K. Finletter, Special Assistant to the Secretary of State, in charge of the Division of Defense Materials.