UNFAVORABLE EXCHANGE POSITION DEVELOPING.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000701050001-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: November 9, 2016
• Document Release Date: January 20, 1999
• Sequence Number: 1
• Publication Date: July 2, 1953
• Content Type: REPORT

'Sani 701050001-7
25X1A2g
COUNTRY: Chile
SUBJECT: Unfavorable Exchange Position Developing.
PI .CE ACQUIRED:
-- --
DATE ACQUIRED :
- 25X1A6a
DATE OF
INFORMATION:
Jun 53
..6
25X1X6
1. With the copper price at US 30$ per pound in the US, and a trend for
possible lower copper prices in sight, US exporters should watch ex-
change developments in Chile carefully. According to the latest in-
formation on hand, Chile has 40 thousand tons of copper unsold and
further piling up of this inventory is in sight.
2. The copper shortage which prevailed in 1951 is now reversed. Copper
production for this year will be slightly over the demand for copper
and further gain in copper production is predicted for the near future.
No one can estimate now where the copper price will stabilize itself on
the world market but metal men in general expect lower copper prices.
3. The Chilean government buys copper from the producers at US 21i $. Each
one cent cut would mean, according to the Central Bank, a revenue loss
of eight and one-half million dollars in exchange. 25X1X6
nis unevaluated information for US Officials
Only is su p eI for the i P= +' interest of
your analysts. It ~'c s rot Fv!arrarrt dissemi-
nation hymeport.
25X1A2g
RETURN TO CIA
Sanitized - Approved For Release : CIA-RDP83-00423R0bt001-7