811.20 Defense (M)/5789: Telegram
The Acting Secretary of State to the Ambassador in China (Gauss)
Washington, April 4,
1942—7 p.m.
258. Your 251 of March 20.
- 1.
- The Department is gratified that General Stilwell will make arrangements for the coordination of the exports of materials from China with the imports of materials into China. You are requested to keep the Department informed as to the plans for the use of transport planes, especially as to (1) the amounts of materials which these planes will be able to transport monthly outward from China; the estimates if possible to be given by months for 12 months from the date the service will start, and (2) the points which will be covered by this air service. The Department understands from your 251 that the present plans are that these points will be Sadiya, Myitkyina and Yunnanyi. It is assumed that rail transport will be used from Sadiya across India to Bombay and Karachi. Please keep the Department informed fully as to this whole transportation program.
- 2.
- Tungsten. The Metals Reserve Company has made contracts with the National Resources Commission whereby 75 percent of the purchase price of tungsten will be paid in cash to the Chinese Government, the other 25 percent being applied on the Export-Import Bank loans. It is understood that this purchasing program is producing the maximum amounts of tungsten. Please report your latest estimate as to the total amounts which will be produced and shipped during the forthcoming year by quarters.
- 3.
- Tin. The Metals Reserve Company has a 5-year contract with National Resources Commission to buy an aggregate of 36,000 tons of tin. However, it is understood that the British are taking up in London with the Chinese and Russian Ambassadors there a proposal to divert to Russia the total production of 1942 tin in China in consideration of a corresponding reduction in the amount of tin which the United States and Great Britain will make available to Russia during 1942. If this plan should go through the export of tin to us by the air route may be disregarded. Please telegraph the estimated tin production of China for 1942.
- 4.
- Tung oil. The Department is consulting with the interested departments and agencies here whether it is desired to acquire the tung oil stocks and production referred to in paragraph 5 of your 251.
- 5.
- Bristles. The Reconstruction Finance Corporation is interested in acquiring the 310 tons of bristles in stock and the 1,250 tons of bristles to be produced during 1942. The Reconstruction Finance Corporation is currently discussing this with the Universal Trading Company here.
- 6.
- Silk. It seems obvious that if we can provide the transportation and the British cannot it would be desirable for us to acquire the silk and bring it out of China. We will require, however, full information as the quality of the 200 bales in stock and the 5,000 bales to be available during the year. A preliminary report of the War Production Board here informs the Department that yellow Chinese silk coming from Szechwan province is as good silk as any white silk which is produced. Are the stocks and production to which you refer in your telegram from this province and are they of high grade? If not what is their comparable quality to high grade Szechwan yellow silk? If your report as to quality is satisfactory the Reconstruction Finance Corporation will decidedly want to acquire it. With whom should the negotiations be undertaken?
- 7.
- Your paragraph 8, your 251. Please keep the Department informed of the progress of the completion of the new roads.
- 8.
- Paragraph 9, of your no. 251. The Maritime Commission has been informed.
- 9.
- Reference your 282, March 27.14 The Department will appreciate your opinion on McKay’s statement that he believes that there should be American investigators in China checking on quantities of materials produced and shipped and on quantities that could be produced and shipped. If you agree with Mr. McKay, please telegraph whether such investigators may be obtained in China or whether it is necessary to send them to China from the United States. Please also state your recommendations as to how many men should be required and what their qualifications should be.
Welles
- Not printed.↩