Memorandum of Conversation with Secretary of State Dean Acheson, Stuart Symington, and Willard Thorp

THEMED 323 ARCHIVES SERVICE* 'NATIONAL RECORDS AND Memorandum of Conversation December 20, 1951 Subjects Tin Participants: W. Stuart Symington, RFC Secretary Acheson Willard L. Thorp (E) Copies to: ARA - Mr. Miller CMP - Mr. Brown FE At the beginning of the meeting there was a temporary exchange of reading matter. Mr. Symington gave the Secretary his reply to the Brannan letter, and the Secretary gave Mr. Synington the letter from the President of Chile. The Secretary then outlined the interest of the Department in the problen stressing first our real concern over not merely the situation in Bolivia but the spread- ing discontent in Latin America. Secondly, he exphasised our concern about the use of the stockpile for commercial purposes. Mr. Symington then outlined his position in his usual. manner, stressing the trezendous profits which were being made, the great increases in taxes in Bolivia, and his belief that $1.12 wes an exceedingly generous price. He mentioned the widespread support of his position, particularly noting the posi- tions of Senator Johnson and Mr. Ilgenfritz. There then was considerable rambling discussion during which Mr. Thorp questioned the significance of average cost of figures and the conclusion that $1.12 had any special significance as a "right price. Upon being asked by the Secretary as to what he proposed to do, Mr. Symington said that he felt it desirable to put up to the British the ques- tion as to what arrangements would nake it possible for us to purchase Malayan tin at the $1.12 price, and for us to continue the negotiations with the Indo- nesians, scheduled to be resumed in the second week in January, with a similar goal in nind. The Indonesians have suggested $1.25, but he feols confident that a contract can be closed with them at $1.12. In both cases, he expects to argue initially for $1.03. Mr. Symington prefers not to procesd with the Bolivians in advance of these discussions because he feels that the Bolivians can properly have a premium, but that if he agrees with them first, that price will be required by the British and the Indonesians and the premium will disappear. Consequently, in order to set up a presium in the contract, it must be done afier the other arrangements are completed. Mr. Symington said that Mr. Fleischmann definitely had it on his agenda to discuss tin with the British