800.6354/72: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received June 24—12:25 p.m.]
555. Foreign Office confirms that the consent of the signatory governments is taken for granted and that it is planned to put the tin buffer stock scheme in effect July 1. The Foreign Office also states that a reply to the American note will be made in due course but it will be mainly a confirmation of the fact that the views expressed therein were made available to the Committee and the interested governments.
From what the London tin market knows of the scheme it for the most part considers that the immediate effect will be bullish and that the price of tin will move well into the pounds 200–230 range before the end of July. Incidentally according to Todd the Tin Committee estimates visible stocks and stocks at smelter at 47,500 tons and 7000 tons in possession of United States manufactures. Tin Committee’s definition of normal visible stocks is 26% of the maximum yearly consumption, which in 1937 was 130,000 tons.