800.6354/138a: Telegram
The Secretary of State to the Ambassador in the United Kingdom ( Kennedy )
883. Your 1528, September 8, 4 p.m.85 As regards tin, it is probable that the Tin Advisory Committee of the American Iron and Steel Institute will be prepared, when it meets on Monday, to issue [Page 929] a statement with respect to tin substantially along the lines of the statement to be made by Viles respecting rubber.86
It is understood that the manufacturers who are large purchasers of tin are doing their best to discourage speculation and are not actively in the market. The present speculative situation in the tin market is caused, however, at least to a considerable extent, by a real shortage of free spot and nearby tin. Manufacturers requiring small amounts of tin have not carried stocks and find themselves in difficulty in securing their necessary current supplies.
Apparently, speculation on such nearby supplies has been increased by the report that tin scheduled for shipment from England has been withheld or limited to very small amounts. It is generally agreed here that shipments of something like 1,000 tons from England during the next month or so, followed by even smaller shipments for another month, would make it possible to tide over the present period of stringency until larger supplies may be available from the Middle East. Such releases from England would demonstrate the determination of the British interest in avoiding speculative prices and would encourage manufacturers and others in the market here to cooperate in restoring reasonable price stability.