811.24 Raw Materials/955: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Kennedy)
917. Department’s 876, 16th. Since the situation with respect to tin largely parallels that affecting rubber, the International Tin Committee may be prepared to act along the following lines:
- 1.
- Announce at least a 100-percent quota for the third and fourth quarters, thus indicating to producers that demand will be sustained and that therefore they will be justified in expanding operations.
- 2.
- Make third-quarter quotas available immediately so far as stocks might be released for June shipment.
- 3.
- Send a representative to the United States to negotiate regarding specific reserve-stock purchases here.
- 4.
- Announce any additional quota that may be necessary to cover reserve-stock purchases here as soon as definite arrangements can be set up.
Discussions are proceeding actively between the steel interests and the Reconstruction Finance Corporation (although no publicity is being given to this effort) regarding the establishment of a private corporation to purchase tin reserves. In the event that this method proves inadequate, the Government will be prepared to acquire reserves directly. The quantities under consideration are large (ranging from 50,000 to 100,000 tons) and it will be desirable to secure the stocks as rapidly as possible, and particularly to expedite shipments during the next few months.