811.20 Defense (Materials)/16: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received June 22—11:13 a.m.]
1782. Embassy’s 1781, June 22, 3 p.m.1 The following strictly confidential information has been obtained in response to your request of June 15, 3 p.m.1
Chrome ore: As regards metallurgical grade British Government defined situation in Turkey as follows and made following informal proposal. Under Anglo-French-Turkish Agreement2 British and French Governments have an option on total Turkish output which Turks agreed to limit to 250,000 tons, in proportion United Kingdom 11/15’s, France 4/15’s. Question of disposal of French portion now arises. British Government has no knowledge as to whether Turkey may put forward a claim to ship the French 4/15’s to German controlled France or not. British are aware that Turkey using its option to hold up United States and have asked $23 per ton f. o. b. on an American Treasury purchase inquiry for 15,000 tons. Under Anglo-French-Turkish Agreement United Kingdom portion is to be at current London metal exchange price which in turn is based on price of Rhodesian ore which British Government state they are keeping at a reasonable figure as evidenced by a recent sale to the United States of 22,000 tons at 75 shillings per ton. British authorities state that they are fully prepared to facilitate supply of 100,000 to 150,000 tons of Turkish ore to United States if satisfactory settlement of French option can be made. They feel that a practical basis would be for them to offer to take the French 4/15’s from Turkey for dollars if the United States in turn took it over. Although this would break the Turkish holdup price it would guarantee them a market and give them dollars and from British point of view would provide an other than German [Page 945] outlet for the ore. British Government states that if satisfactory settlement of Turkish situation cannot be evolved British Empire might conceivably supply reasonable American requirements but situation would be extremely difficult and hazardous. Rhodesian output now at about 192,000 tons but apparently cannot be increased substantially. Present stocks Rhodesian ore roughly 100,000 tons.
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