893.6359 Wolfram Ore/58: Telegram
The Chargé in China (Peck) to the Secretary of State
[Received April 11—11:40 a.m.]
253. Department’s 65, April 8, 3 p.m. This morning I had an opportunity to ask Minister of Finance Kung about the reported wolfram export monopoly and he said that it was true that the Chinese Government had appointed the Peiping Syndicate exclusive agent for the sale of this ore in foreign markets. He explained that there was an unfortunate prospect that Kiangsi Province where tungsten mines principally are found would fall into Japanese military occupation and that the arrangement with syndicate carried with it a sort of guarantee of “protection” from the British Government. He said that if American Government had been willing to afford the same protection the Chinese Government would have been equally willing to make the arrangement with an American firm and he implied that similar arrangements in regard to other products were available but he was not specific.
It was clear that what he alleged about British “protection” was intended as a defense in advance against criticism of the granting of monopolistic privileges. I inquired whether the agreement with the syndicate meant that American purchasers would be obliged to deal only with that firm and Kung replied that the Government had exclusive control of tungsten sales and that purchases would have to be made either from the Government or the syndicate; even if the Government were the seller it would have to pay the syndicate its commission nevertheless.
In view of Kung’s statement I venture to suggest that a formal protest through the Foreign Office would lead merely to a specious and evasive rejoinder or to a continuation of the present deadlock in our argument regarding government control of business in certain commodities. On the contrary if we desire to come to some private arrangement to ensure a supply [of] tungsten it would seem advisable to continue the discussion with Kung either direct or through K. P. Chen24 who presumably is in New York. In the premises does the [Page 665] Department wish to make any change in its instruction regarding the wording of the protest?
Not repeated.
- Adviser to the Chinese Ministry of Finance.↩