811.20 Defense (M)/90: Telegram
The Ambassador in the United Kingdom ( Kennedy ) to the Secretary of State
[Received 8:15 p.m.]
2212. Since the receipt of Department’s 1680 July 9, 6 p.m. and 1738 July 12, 7 [4] p.m. detailed discussions have taken place with the Ministry of Supply and the Ministry of Economic Warfare as a result of which the following information has been obtained:
- (1)
- As regards Rhodesian ore the metallurgical grade production is now running at the rate of 10,000 tons a month. The limiting factor [Page 947] on Rhodesian production is said to be the number of technically competent white supervisors, a good many of whom have already been called up for military service. Of the 10,000 tons current production, 2,500 is going to Canada, 1,100 to the United Kingdom, and 7,000 to the United States. The 600 tons difference is at present being made up out of stocks. The Chrome Company has informed the Ministry of Supply that it could raise production by 2,000 tons per month, but to do so would have to change its specifications from 49 to 47–48 C. E. 203 and would be reluctant to take this step. As regards stocks, there are 35,000 tons in Rhodesia of metallurgical ore and this could be purchased by the Procurement Division of the Treasury for 90 shillings a ton f. o. b. Beira, payable at the official rate.
- (2)
- As regards Turkey, the position is complicated and has changed from that set forth in my 1781, June 22, 3 p.m.5 Due to the delay which ensued between my 1781, June 22, 3 p.m. and your reply No. 1680, July 9, 6 p.m., the British panicked and offered the Turks a guaranteed price of 100 shillings while acceding to Turkey’s request to sell direct to the United States. The Turks then asked for 110 shillings and the current British counteroffer, which the Turks are now considering, is 105 shillings for the balance of 1940 which with stocks on hand will amount to approximately 180,000 tons of which roughly half is metallurgical grade.
However, the British have indicated that they are willing to do what they can to be of assistance to us and are going into the shipping question and will supply further information as soon as possible. They are of course desirous that we take up Turkish chrome rather than have it pile up there. They feel that Turkey does not have as strong a bargaining position as is apparent because it does not acquire free sterling for its sales of ore to the United Kingdom, much of the proceeds being credited against British loans and the rest being blocked. They believe that the Turks will hold us up if we turn ourselves into the eager buyer, but if we allow Turkey to become the ready seller we can make favorable terms.
They are prepared to pass a word to Russell, who is a British subject in charge of the Chrome Company which, as you know, is a British company owned by Union Carbide, suggesting that he urge the Turks to seek us out and also to instruct the British Embassy at Istanbul to discuss the position with our Embassy. We would of course have to deal direct with Turkey. If you wish such an instruction sent please notify me.
In any case I would appreciate an answer on the Rhodesian proposition and an indication of what you intend to do at Istanbul.
My own feeling is that if you think it really important to have Rhodesian production increased the British Government could do [Page 948] so by making an effort and perhaps calling back people who have been mobilized and the way to get that done is in connection with the helpful concessions which we for our part are making for the British which I gather is being done through Purvis.6