News – U. S. Signs Pact For Bolivian tin

After months of negotiations, the U. S. has agreed to buy between 6000 and 7000 long tons of Bolivian tin now stockpiled at Peruvian and Chilean ports, at $1.175 per lb, f.o.b. South American Ports. Harry A. McDonald of the Reconstruction Finance Corp. signed the contract with Victor Andrade, Bolivian ambassador. The Mercantile Metals and Ore Corp., of New York City, acted as the agent of Bolivia's Banco Minero in negotiating the deal. The contract is a short term one. Throughout the talks, the U. S. refused to make a long term agreement because of the possibility that Bolivia will soon nationalize its mines. The Bolivians desired to sell the U. S. 18,000 tons during a one-year pact. The price agreed upon is roughly the same as with Malayan producers. In the meantime, American Smelting & Refining Co., signed over control of its operations to the Bolivian Government. The formal act of leasing the mines to the Bolivian Government follows the announcement last July by the company that it was closing operations because of high costs. Contract terms were not disclosed.