800.6354/147: Telegram

The Ambassador in the United Kingdom ( Kennedy ) to the Secretary of State

1656. It was decided today to ask the International Tin Committee to raise the quota for the third quarter to 100 percent. The Dutch have informally agreed. The Colonial Office points out that any deficit in production in the third quarter can be made up by the mines during the fourth quarter but that the mines have large stocks at the pithead which they are now releasing to the smelters rapidly. The Colonial Office is prepared to request an increase in the fourth quarter, if it later seems desirable or necessary but feels that the releases now envisaged will more than meet the markets requirements and will add over 25,000 tons to world stocks. The tin markets of London and Singapore will open on Monday with maximum prices of £230 and £227, respectively.

Kennedy