824.6354/395a: Telegram
The Secretary of State to the Ambassador in Bolivia (Boal)
1180. The Department is presenting a memorandum to the Bolivian Ambassador proposing the following amendments in the tin contract: (1) extension of its term to September 30, 1948; (2) establishment of the price at 63½ cents per pound of tin content f. o. b. Pacific ports for one year beginning October 1, 1943; (3) substitution of a new schedule of smelting charges and impurity penalties replacing the schedule in paragraph 8 of the present contract and the percentage quotas and penalty provisions of paragraph 3 thereof. This new schedule would be designed to stimulate the production of high-grade concentrates by increasing the charges for low-grade ores and would absorb approximately 1 cent of the apparent 3½ cent increase in the case of ores of average present grade. The Bolivian Embassy has already indicated that the Bolivian Government will devote its share by taxation of any increase to social welfare purposes and this would be confirmed in an exchange of notes. The net increase to producers under the proposal would thus average 1½ cents per pound, although it would be greater if a larger proportion of high-grade concentrates were produced than is now the case. Consideration would be given to establishment of a separate schedule of treatment charges applicable to a limited tonnage of low-grade concentrates delivered by the small producers through the Banco Minero. Text of memorandum follows by air mail.