CHILEAN COPPER SALES TO THE SINO-SOVIET BLOC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62S00346A000100110033-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 12, 2016
• Document Release Date: October 7, 1998
• Sequence Number: 33
• Publication Date: February 14, 1958
• Content Type: MEMO

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STAN?aft?A1-8ved For Release 2000/ 01 A-RDP62S00346A000100110033-9
Office Memorandum ? UNITED STATES GOVERNMENT
TO : Chief, Economic Research Area
TA RU Chief, Materials Division '~
FROM : Chief, Nonferrous Metals and Hinerals Branch
SUBJECT: Chilean Copper Sales to the Sino-Soviet Bloc
DATE: 14 February 1958
1. Several recent Associated Press releases have stated that
Chile has sold copper wire to the Soviet,Bloc.' Thusfar, sales of
1;-,500 tons of copper wire (probably 6 mm and under in diameter)
:7avc been reported and discussions concerning the possible sale of
;5,000 tons are supposed to be underway.
2. On 10 February 1958, the State Department cabled the
American 'Embassy in Santiago asking for comments on these press
releases. On 13 February at 1700 a telegram from Santiago was
received at State, in which was confirmed definite sales of 3,500
tons of 5.8 mm wire to Otto Schilling, Hamburg, for reshipment to
the Bloc. The telegram also stated that the Copper Department of
the Chilean Government was trying to sell 10,300 tons of wire direct
to the USSR but the deal had not been concluded. The telegram did
not contain any information on prices.
3. As you know, the Bloc has discussed possible copper deals
with Chile several times in the past. Heretofore, the deals fell
through because Chile held out for hard currency, while the Bloc
wanted to give either soft currency or barter. Apparently,
Schilling has been able to satisfy the demands of both parties on
the matter of exchange. Whether the USSR and Chile will be able
to conclude a direct deal is still problematical.
4. In view of the current copper surplus in the Free World
and the continuing copper deficit in the Bloc, pressure on Chile for
additional exports of copper wire to the Bloc will continue. While
we do not know the price that the Bloc has paid for the 3,500 tons
bouht thusfar, there is no possibility that the price was more than
10 percent below the Free World price. The only electrolytic copper
available to the Chilean Government is that obtained from Anaconda
and Kennecott--normally 20,000 tons per year--at 10 percent below
the Free World price. Chile has wire dravi.ng facilities for more
than this amount--at least 30,000 tons annually. Santiago has
reported, however, that "copper department has raised reserves for
local fabricators to 41,200 tons for 1958". Presumably, the Chilean
Government will obtain more electrolytic copper in 1958 and increase
its output of wire substantially.
Approved For Release 2000/09/07 : CIA-RDP62SO0346A000100110033-9