811.20 Defense (M) Chile/5–2945

The Executive Vice President of the United States Commercial Company ( Scheuer ) to the Assistant Secretaries of State ( Clayton and Rockefeller )

Gentlemen: In your letter of January 19, 1945, to Mr. Crowley, it was recommended that the U.S. Commercial Company make arrangements that would provide for a continuation of subsidy purchases of copper and gold ores and concentrates from the small producers in Chile for the six months’ period ending July 31, 1945. Pursuant to this recommendation, the U.S. Commercial Company Board, on January 23rd, approved purchase arrangements for the three months’ period ending April 30, 1945, at a slightly reduced purchase price; and, on April 17, 1945, approved such purchases, on a further reduced price basis, for the three months’ period ending July 31, 1945. Under the circumstances it is not our intention to renew any of these contracts.

We understand from our representatives in Chile that the interested authorities there are attempting to work out some program so that, when the U.S. Commercial Company program terminates, the Chilean Government will take such steps as may be necessary to maintain the small mining industry. Despite this fact, however, the question of extending the U.S. Commercial Company program beyond July 31st may be raised. We thought it proper to bring this termination to your attention.

Sincerely yours,

Sidney H. Scheuer