Foreign Relations of the United States: Diplomatic Papers, 1942, China

811.20 Defense (M)/5789: Telegram

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

Chungking , March 20, 1942—11 a.m.
[Received March 21—8:31 p.m.]

251. Department’s 174, March 14, 5 p.m.

1. General Stilwell appreciates the importance of coordinating the movement of strategic materials out of China with the movement of materials into China, and expresses the desire to cooperate in facilitating such coordination subject to any possible prior demands of an immediate military character. His mission will be in control of transport planes but he has no assurance that such planes will be in operation by April. He approves Myitkyina and Yunnanyi as points at which stocks of materials now in Burma and China should be assembled by the Chinese [apparent omission] and eventual land transport to Ledo (Assam).

2. The Chairman of the National Resources Commission [Wong Wen-hao?] has undertaken to expedite the transportation of present stocks of tungsten and tin in Burma and China (see Embassy’s No. 229 of March 16, 10 a.m.,¹⁰ McKay¹¹ to Maritime Commission) to Myitkyina and Yunnanyi respectively and also to effect transportation of future stocks to designated points. The anticipated production for 1942, besides stocks now available, is: tungsten 15 to 20,000 metric tons and tin 7,000 tons. There are no figures on antimony as the Chinese are non-producing because they do not plan to make shipments. There is apparent some lack of appreciation on the part of Chinese officials of the need for energetic action. The Embassy, bearing this in mind, will tactfully exert pressure for action.

3. McKay plans to depart soon for India where he will investigate the transport situation from Ledo to the west coast of India. There are indications of Chinese disinclination to undertake responsibility for arrangements for and supervision of transport through India and possibly Burma. It may be necessary and advisable for us to assume that responsibility.

4. Some adjustment with regard to cost in the contracts between the Metals Reserve Company and the National Resources Commission will apparently be necessary but on what basis cannot be determined until the differential between transportation costs over route to west coast of India and costs for Rangoon are determined by McKay on his trip to India.

5. Embassy believes that direct contracts by a Governmental agency should serve to expedite transportation of bristles and tung oil and suggests that the contracts be made in America with the Fooshing representative Universal Trading Corporation for f. a. s. delivery Bombay in effort to induce Chinese to complete Indian organization. There are 50,000 tons of tung oil and 310 tons of bristles in stock and 140,000 tons of tung oil and 1,250 tons of bristles to become available during the year. The Chinese will be urged to move stocks to points on the road for transportation by air in the case of bristles, and by truck in the case of tung oil, when transportation to Assam becomes possible.

6. The matter of silk has been discussed with the British Embassy which had radioed London for advice as to the quantities desired. There are now 200 bales in stock and 5,000 bales will be available during the year. The British will no doubt meet with difficulty in arranging for transportation of such quantities as they desire. The Department will be informed of this Embassy’s views when the British position is clarified.

8. [sic] With regard to new roads, [it] is hoped that the section between Lungling and Myitkyina will be completed within 2 months and that an all weather road from Myitkyina via Tinghai to Ledo will be completed by August. The completion within these time limits is largely a matter of speculation, and is dependent primarily upon the energy with which work is pressed.

9. McKay, who has cooperated in obtaining the foregoing information, requests that substance of this telegram be communicated to Maritime Commission.

10. It is clear from the foregoing that the principal obstacle to prompt movement of the materials is the lack of either land or air transport through to Assam. Trucks cannot proceed to Assam until roads are completed and transport by air must await arrival of planes from the United States. There are now no planes available for transport of cargo. Embassy will exert every effort to have the Chinese assemble the stocks where they can be transported to Assam when facilities become available, and will keep the Department advised as to developments.

Department’s 186, March 18, 8 p.m.¹² just received. McKay is preparing reply for Robson.¹³

Gauss

10. Not printed.
11. Capt. H. L. McKay, Director of Division of Forwarding, U. S. Maritime Commission.
12. Not printed.
13. H. Harris Robson, Director of Division of Emergency Shipping, U. S. Maritime Commission.