File No. 658.119/149

The Secretary of State to the Ambassador in Great Britain ( Page )


6061. [From War Trade Board]:

Your 7956 [7946] regarding Swedish ore. War Trade Board reports that there are no basic Bessemer or Thomas process steel plants in this country and that by this process alone can high [Page 1087] phosphorus ore be used. All existing plants suited only to low phosphorus ores. Under existing industrial conditions no plant would on private account feel warranted in making changes necessary to use high phosphorus ores. Only steel plants situated at or near seaboard could use Swedish ore of any kind because railroad freights to inland points would be prohibitive. These’ facts in connection with present high ocean freights preclude bringing of high phosphorus ores to this country for use in near future as a commercial proposition. If these ores are to be purchased at all it must be on Government account and for use at distant date. If Sweden will not reduce export to Germany to point of crippling her the only result of our Government purchasing would be to relieve Sweden of its surplus ores.