811.20 Defense (M)/4078: Telegram

The Ambassador in China (Gauss) to the Secretary of State

9. Department’s circular telegram of December 27, 6 p.m.

1. During 1942 there will be available 8,000 tons of tungsten, 5,000 tons of antimony, and 7,000 tons of tin for shipment to the United States. Total production during 1942 will amount to 12,000 tons of tungsten, 7,000 tons of antimony, and 11,000 tons of tin. Of this amount 4,000 tons of tungsten, 2,000 tons of antimony, and 4,000 tons of tin are committed to the Soviet Union under the Sino-Soviet barter agreements. Domestic consumption is negligible.

Regarding quality, the tungsten ore contains an average of no less than 60 [65]% of WO3, no more than 1.5 of tin and no more than 0.2% of arsenic. The antimony regulus is of two kinds, about 2,000 tons can be made 99.6% pure with no more than 0.1% of arsenic and the remaining qualities are largely of 99% with no more than 0.3% of arsenic and a small part 98%. Of the tin available, about 25% to 30% are of 99.75% purity and the others of 99%. No accurate estimates can be made at present as to the quantities of minerals that can be moved to the port of exportation as it involves the question of transportation facilities as well as the supply of gasoline. [Page 634] The Minister of Economic Affairs2 took up the question of transporting these minerals with the Generalissimo3 and was assured by General Chiang Kai-shek that priority would be given to the transportation of minerals destined to the United States for defense purposes. Politics is a most important factor in transportation and without the full cooperation of the Generalissimo we will have difficulty in obtaining the minerals due to the transportation factor.

2. At present there are 1,000 tons of tungsten, tons of antimony 4,000 and 1,500 tons of tin on hand. These ores are at the place of production. There is some tin in Rangoon waiting shipment and according to the Ministry of Economic Affairs the American ship Tulsa now at Rangoon has refused to load ores due to the recent air raids on Rangoon.

3. The production of minerals can be increased by 5,000 tons during 1942 if conditions are favorable. No estimate can be obtained regarding increases during years subsequent to 1942 but it is doubtful if the increase would be appreciable.

4. In order to transport the 20,000 tons of minerals available for shipment to the United States in 1942 from the point of production to the port of export the supply of about 2½ million gallons of gasoline is necessary. There are sufficient trucks to transport all these minerals to the port of exportation provided they are given priority. The Chinese are very apprehensive about sending materials to Rangoon at present for storage. It is proposed to send the minerals to Calcutta via Rangoon rather than have them stored at the latter port. The Chinese Government is taking up this matter with the British authorities and the Minister of Economic Affairs requested that the American Government also approach the British Government in this matter.

In the event that future conditions make it impossible to export minerals through Rangoon, the Minister of Economic Affairs suggested that the United States supply cargo airplanes to transport minerals between Kunming and Calcutta.

Gauss
  1. Wong Wen-hao.
  2. Chiang Kai-shek, President of the Chinese Executive Yuan (Premier).