811.20 Defense (M)/5788a: Telegram
The Acting Secretary of State to the Ambassador in China ( Gauss )
174. The Government is most anxious that every possible step be taken to assure the movement out of China of various strategic materials urgently needed in this country. The War Department has suggested that the problem be submitted to General Stilwell,8 who is charged with the movement of goods into China.
You are accordingly instructed to confer with General Stilwell or an appropriate member of his staff and to impress upon him the great importance of transporting the strategic materials out of China and of coordinating this movement with the movement of goods into China.
The materials in question, listed in the order of importance in so far as their movement from China is concerned are tungsten, tin, silk, bristles, antimony and tung oil.
The tungsten, tin and antimony production are covered by contracts between Metals Reserve Company and National Resources Commission. If these materials are to be moved by air transport, it is possible that some adjustment may have to be made to cover the additional cost involved. However, in view of the fact that these materials are urgently needed in the war effort and are covered by contracts with [Page 639] a governmental agency, could it not be arranged with General Stilwell to transport them in government owned planes without additional cost. If this is not possible, please advise urgently, giving your views as to excess costs and other matters standing in way of prompt shipment.
No direct contracts have been made by a governmental agency covering the purchase of bristles and tung oil, but such contracts could be arranged if it would expedite the transportation of larger amounts of these materials than would otherwise be moved to the United States. Please telegraph the Department if you believe such contracts advisable. In such event, please advise whether matter should be discussed with Chinese representatives here or by the Embassy in Chungking. In the latter event please state quantities and prices involved so that necessary approval may be obtained from Reconstruction Finance Corporation subsidiary here.
The comments made above concerning air transportation are equally applicable to bristles and tung oil.
With respect to silk, no immediate problem is foreseen from the point of view of the United States Government. The War Production Board have agreed to the British proposal that no United States purchases of silk be made for the present, thus leaving the way open to the British to purchase without competition from the United States. Accordingly you are requested to advise your British colleague that the United States Government does not intend for the present to make any silk purchases. However, if you believe that the British cannot buy and transport all of the raw silk available, please telegraph your views as to the procedure which should be followed in order that the greatest amount of silk can be moved out of China.
The Department assumes that any action taken in conjunction with General Stilwell, looking to the movement of materials out of China, will be coordinated with continued movement to this country, either through representatives of General Stilwell’s Mission or through representatives of the Maritime Commission. In the latter connection, McKay, a representative of the Maritime Commission, is on his way to Chungking to confer with General Stilwell. (See Department’s 145 of March 3.9)
Please advise the Department urgently of any obstacles which may stand in the way of prompt movement of these materials, and also please keep the Department advised as to developments.