800.63454/176: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Kennedy)
Washington, November 24,
1939.
1497. Todd has recommended immediate fixing of the first quarter 1940 tin quota at 100 percent. If you see no objection, please press this proposal strongly with the British Government. The following points may be helpful:
- 1.
- The present rate of production of ore and metal in the East is unsatisfactory as evidenced by the fact that tin purchased by American manufacturers and importers since the first of October has been considerably below the rate of American consumption.
- 2.
- Apparently the difficulty is due to the fact that an insufficient number of mines are operating to produce enough ore to fill the present quota. The American Consul General at Singapore reports the opinion of the best-informed representatives of mining, smelting, and trading interests that no improvement in the situation can be expected (involving large outlays to open closed mines) unless an immediate announcement is forthcoming that the present quota will be maintained at least until July.
- 3.
- Todd has given Campbell his estimate that United States consumption during the first quarter of 1940 will be maintained at approximately 10,000 tons monthly, justifying releases at 100 percent for the first quarter.
- 4.
- It is believed that releases at 100 percent would also be fully justified for the second quarter, quite aside from the trend of commercial production (which cannot be predicted this far in advance), due to the strong desire here to add to commercial stocks as soon as possible and the Government program for the purchase of reserve stocks, a program which may soon be extended since Congress probably will be asked to make additional appropriations as soon as it assembles.
Hull