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- Parte de White House Staff Member and Office Files (Nixon Administration), President's Office Files
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OCR Page 1 of 53THE PRESIDENT HAS SEEN
PHW
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
JUL 19 1973
ACTION
MEMORANDUM FOR
THE PRESIDENT
FROM:
FREDERIC V. MALEK
SUBJECT:
Disposal of Stockpile Tin
On March 16, 1973, you approved a disposal program for tin
which "would stabilize the tin price at a level equivalent
to the price that prevailed before devaluation." (See Tab
A). After State Department's consultations with tin pro-
ducing countries, it was further decided to limit GSA tin
disposal to 5,000 tons for the first half of fiscal year
1974. You sent letters to President Banzer of Bolivia
and Prime Minister Kittikachorn of Thailand on June 4
informing them of U.S. plans. (See Tab B).
During the first five months of this year (January-early June)
the world price of tin increased by 18% from $1.76 to $2.07.
Since GSA began its disposal program for tin on June 7, the
price of tin has increased by an additional 14% from $2.07
to $2.35, even though GSA has already sold the entire 5,000
ton quota.
In order to help restrain the inflationary pressure in the
tin market, I recommend we reopen consultations with producer
countries to increase our tin disposals over the next six
months to 17,000 tons. Given the strong demand in the tin
market and the relatively small share (4.4%) of the world
market that our present tin sales represent, I do not think
increasing sales to 17,000 tons would have a serious adverse
impact on producing countries.
The State Department agrees but feels that in consultations
with the tin producing countries, it should be authorized
to say that if the world price of tin drops to $2.07 per
pound -- the price when GSA began its current program --
GSA would revert to the 5,000 ton rate, or an average of
830 tons per month.
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