Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 9, 2016
Document Release Date: 
July 14, 1998
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Case Number: 
Publication Date: 
February 19, 1954
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PDF icon CIA-RDP61S00527A000200100060-9.pdf116.46 KB
Approved For Release 2000/09/14: CIA-RDP61 SO0527A000200100060-9 ^. -" rciing tr:e :-arr i ntf r (the originator of this memorandum is not indiaated) Date: 19 February 19L 5 . nc.; nits appropr1 ;te n.i_i c ng. The firm which prepared this memorandum (hereafter referred to as "the been dealing with copper sales intensively for 2j .years. Copper deals with Chile not the same as copper sales transacted on the stock exchange. The entire Chile r copper market is under the control of the Chilean government, which t*t in turn leaves the entire administration for copper sales to the Banco Central, Chilersi copperas not sold at world market prices,- The price is determined by the Goverrn: rt that is to say Parliment. Chilean copper prices have always been above the worlc: ma rketprices. ' During the last two years the demand for copper from the Sc bloc countries has been enormous, however, until now no arrangement could be made wt;h Chile, since*the,disagreeing terms of buyer and seller could not be conciliated. The Banco Central of Chile according to law, may sell the copper only FOB a Chilean port, whereas the Soviet bloc countries only will accept FOB a Benelux pert, Thus the main problem in arranging the transaction is the intermediary financings The firm has a branch office in Chile, which has deposited a West certificate (possibly an affid$vit that shipment will only be made to non Soviet Bloc countriesi, for 25,000 tons-at the Banco Central. This West. certificate has been accepted by the Banco Central since it is legalized by all Danish government offices.. The.ref ora_ , this firm can make shipments of.25,000 tons copper against this certificate. Corresponding acceptance`cables7have been received. Also sufficient available who are ~ buyers are r to-open-a check deposit or a letter of credit at a Swiss bank for deliveries FOB .a Bepplux port, .ti Mr. Siebermann Wad t oday to undertake the that thereceipient of this memorandum would be wi_t:ing iVberzo financing. The fins would thus be in a postion to start immediately with a` shipmeit.of 3,000 tons and would like to receive a written confirm4s tion from the recipieet ot'thia memorandum that the financ ing against corresponding collateral...xill uade The firm would also' like to know the rate for financng. All letters of crest Fexpensee must be in&aauded in the tae rate, The firm would also. ],ike . to ' point out, that after Receipt of the confirmation, a Swiss bank designated' by the "recipient of this memorandum is "Banco de Chiles pf, th4;, immediately to advise Lhe peistaece of the correBponding collateral (naturally only after the advance notifjcatt*A,Qf the credit has been received from the l'sser,) de s? ~-~ as the Banco de erivps the bank confirmation a 2 purc guarantee will b~ % performance bond as deli ror-,, e posed. with Lloyds Insurance Company, 10. performance /Santiago.. The hoods be insured against ` $$;. including confiscation --ac * ,. &..~,,.o~ j`~j` care of the shi ir oranan rl. m in Chile, they will take Plat in:an o bjecti bl , ona e and correct snner. Fdr the intermediary financing as--well. - Carr ing through fo the= transaction, 60 to 70 days m - s t be calculated , depef W available cargo space. The Banco Central has confirmed by telegram that they. ould mike delivery of the 25,000 tons with receipt of corresponding collAteiral. The firm feels the 30 days after __ -_-t transaction should be made in partial shipments-of an?m 'e'nnn ~ o