411.45A9/5–1352: Telegram
The Secretary of State to the Embassy in the Union of South Africa, at Capetown
251. Concur you see PriMin (Embtel 89).1 Consensus Dept and defense agencies that dipl representations not likely move SoAfr Govt and we cannot rely on good will to obtain manganese and chrome we need. Urinfo only, US needs minimum 350,000 tons manganese and 250,000 tons chrome in 1952 and probably 1953 just to avoid cutback in production with nothing for stockpile.
Propose you approach PriMin and Dept simultaneously call in SoAfr Amb. We wld state forthwith our need for 500,000 tons manganese and 300,000 tons chrome and ask what SoAfr needs to undertake to move this tonnage for US. We recognize we are asking them to place further burden on railway system. Our request however is for special assistance in light of our common defense effort for short run emergency only. If SoAfr unwilling commit itself to large tonnage in future, US will endeavor develop supplies elsewhere but cannot reasonably replace SoAfr tonnage in short time. (See Dept A–87, Feb 16)2 By 1955 US cld be in position to meet its needs without large scale shipments from SoAfr. We consider it in interest of both countries, however, that US continue to import substantial quantities of manganese and chrome from there. MTG our urgent requirements now wld not affect SoAfr long range conservation program. US Govt not unltd in what it can do help SoAfr but willing consider reasonable requests by Union.
Believe here ans of Sauer and Louw part of same stalling tactics SoAfr has followed for some time. There are some hints from both govt and private sources (including Sacco of Associated Manganese Mines who does not wish to be quoted) that SoAfr really has in mind quid pro quo of materials and loans. These rumors not taken at face value but belief here matter shld be brought to a head.
Dept has been unable develop special inducements thought likely to appeal because we have no idea what they want. Purpose is to open way for SoAfr Govt to state desiderata. Among things U.S. can consider are (a) assistance in supply of materials and if necessary, (b) loans of reasonable size for modernizing or for other specific projects. [Page 918] Re (a) U.S. not willing exceed IMC allocations. re (b) SoAfr must apply to Eximbank and present full details to justify loan. Essential you limit discussions to obtaining info, without making any type of commitment. FYI, IBRD loans cannot be used in this manner since it is internatl institution.
No attempt here to place pressure on SoAfr. Pending licenses in U.S. to be processed as usual. Intend request be made in atmosphere mutual self help.
Request ur views soonest so coordinated approach can be arranged.
- Not printed. In this telegram, the Embassy reported that the Union’s Minister of Transportation, Paul O. Sauer, had informed the Embassy in writing that the Union Government had decided to restrict the export of manganese to 500,000 tons annually for all destinations. Ambassador Gallman then reminded the Union’s Minister of Commerce, Louw, that the United States had estimated its needs for South Africa manganese during 1952 at 750,000 long tons. Gallman proposed to the Department of State that he next broach the subject with the Union’s Prime Minister. (411.45A9/5–1352)↩
- Not printed.↩