Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-06-08
US. Defeats Japanese
In Competition for
Bolivian Tungsten
Metals Reserve Corp. Will
Acquire Output for
Next Three Years
BY JOHN LEAR.

which is needed in the making of
modern guns.
Both the Bolivian government and
Federal Loan Administrator Jesse
Jones have announced that the Met
ais Reserve Corp. will acquire
the Bolivian tungsten output for the
next three years.
The competitor in this fight was
Japan, which has been buying b.
livian tungsten for herself and per-
haps for Germany.
Tungsten is the stuff gunmakers
mix with steel to withstand the
shock of shells whizzing through
gun barrels.
BY outbidding Japan for the con-
tract, the United States assured
itself of the tungsten supply on
which it relied during the World
War. At the same time, it cut off
from Japan tungsten supply which
Bolivian newspapers say was known
to be going to Germany.
The fight for the contract illus
trated the competition that is taking
place between the Axis and the
United States for war materials all
over the South American CONT
nent.
Government Backed u. S.
Japan was in the drivers seat in
this particular instance She was
buying tungsten in the open market
and paying good prices, when the
United States stepped in.
The United States offered to buy
ut slightly lower price all the
tungsten Bolivian mines could dig
for the next three years.
The Bolivian government, inter-
vening as guarantor of any con-
tract. lined up with the United
States because, it said:
BY preventing war materials from
reaching Japan and Germany, It
would fulfil its obligation as an
American nation to help protect the
Western Hemisphere.
Accepting the lower price on the
long term would assure its miners
OF fixed income over a period
sufficiently long to permit develop
ment of new mines whereas accept
ing the higher price Of the Japa-
r1ese would be to run the risk of
the United States entering the war
and cutting off Japan from West
ern Hemisphere ports.
Opera tors of Bolivias big tung-
stem mines, who produce most Of
the country's output, agreed with
their government.
Owners of small mines did not.
They had lost money for years, they
said, and here was chance to re-
coup. Take the higher bid offered
by Japan, they argued; the United
States still would be wanting tung-
stem later on if the japanese mar
ket were cut off
The Bolivian government, fear
ful that the United States might
turn to its normal source of tung-
stem in China, demanded practical
guarantees from Japan on the
length of its contract.
Werld War Experience Recalled.
1t remembered that under pres
sure Of trebled prices during the
World War Bolivian tungsten
miners pushed up their production
from 265 to $500 tons a year, only
to have wars end suddenly send
production crashing down again
to 500 tons.
Japan's answer was to match the
three-year offer of the United States
and retain its price offer.
Bolivia still was not satisfied.
Could Japan guarantee with gold,
against the possibility that war IN
the Pacific might keep japanese
boats out of South American ports?
The Bolivian minister of econ
orny published an accusation that
foreign interests were influencing
the small miners against their own
best interests.
The newspapers joined the fray
Those publishing the German and
Italian news services, TranSocean
and Stefani, generally took Japan's
side. The others named an Italian
mine operator as the nucleus of
opposition to the United States
contract.
While the decision hung in the
balance Japan continued to get b.
llylan tungsten, a fourth of the
world total and almost twice the
pre-war output.
Finally the United States Of
fered a new, higher price Bolivia
snapped it up. sent the Japanese
agents a cable saying from now on
the bulk Of Bolivia's tungsten goes
to the United States. Only small
quantities will be available to Japan.
Steady tungsten exports will he'll,
Bolivian economy. Tungsten is the
countrys second most important
product. 1t is now sure of a market.
Tin. Bolivia S leading export COM
modify, also is a vital strategic
product. 1t is being exported in
large quantities to both Great Brit
ain and the United States. A new
American smelter is being built at
Texas City, Tex, for refining b.
hvlan tin. Virtually all of the
smelling used to be done in Eng
land.
Tons of Ore Piled Up.
The big catch in the tin supply
now is boats. Tons of ore are piled
up In Chilean ports, waiting to 90
north. Like everything else that
depends on intra hemisphere ship
ping, tin is being tied up by the
shortage of merchant bottoms.
No other nation in South Amer
lea is so rich in strategic minerals
as this land-locked country in the
heart of the continent. In addi-
ton to tin and tungsten, its noun
tains hold antimony, copper, lead.
zinc, bismuth. nickel, cobalt and
sulphur-not to mention silver, gold
and platinum.
Bolivia is banking on all these to
help her stabilize her economy for
the first time in her history.
Now is the time to start, every
one agrees, because the war has
pushed up both production and prices
OF minerals. Tin, which makes up
almost 80 per cent of Bolivian ex-
ports, has risen from 25, 1893 1899 kilos
(kilo-22 pounds in 1899 to 3d.