840.50 Recovery/12–2049: Telegram
The Secretary of State to the Consulate General at Batavia 1
637. Position proposed ECA bilateral agreement with Neth covering deliveries by that country of tin metal and tin concentrates obscured as stated in ECA Hague tel 696, Dec 132 by “uncertainty re USI handling of entire question”. Reftel being rptd Batavia. Para 6 reftel clearly implies Neth Gov understands similar agreement from USI Gov necessary.
In view these uncertainties and in view contentious part tin exports played in RTC agreements, Dept and other US agencies concerned, namely, ECA, RFC, and Bureau of Supply, have agreed necessary advise Neth that neither bilateral inter-governmental agreement nor actual contracts can be concluded until full understanding arid concurrence USI auths obtained. Dept continues regard bilateral and contracts as in best interests US stockpiling and operation Texas City smelter, so long as policy dictates RFC operation smelter. Dept also regards above agreement and contract arrangements completely in USI interest except in unlikely contingency they would permit Neth [Page 584] to exercise control over Indo tin not otherwise exercisable and in degree undesired by USI.
Particularly in view strong desire avoid interruption receipts metal and ore of Indo origin, would be highly desirable you join with ECA Batavia acquainting USI auths now of US proposals under discussion with Neth, pointing out that so far as intergovernmental obligation involved in bilateral, US would look to Neth for performance and that such agreement is not intended and would not be vehicle for creation intergovernmental obligation upon USI. Attempt secure that USI Amb Wash and/or Djuanda or other responsible USI officials who will be in Wash during Jan will be briefed by their Gov on this matter and on proposed contracts.
ECA Wash will advise its Batavia reps re nature and objectives proposed arrangements and present status negots.