811.20 Defense (M)/6205: Telegram
The Ambassador in China ( Gauss ) to the Secretary of State
[Received 5 p.m.]
425. Department’s 258, April 4, 7 p.m.
- 1.
- Chairman of the National Resources Commission repeats previous estimate that China can produce 15,000 to 20,000 tons of tungsten this year most of which will be available for the United States. He is not prepared to give quarterly estimates and points out that transportation not production is the principal problem (see Embassy’s 380, April 10, 9 a.m., and previous communications on the subject).
- 2.
- Same informant estimates potential 1942 tin production at 10,000 tons.
- 3.
- Embassy approves in principle McKay’s suggestion with regard to the desirability of having in Chungking a competent American representative of the organ of [or?] organs i. e. [in?] Washington [Page 645] responsible for the purchase of Chinese strategic materials but believes that decision or action in the matter should be deferred until we have more definite information regarding transportation prospects and potentialities.
- 4.
- There is, however, another aspect of the matter which merits consideration. Wolfram production in the border districts of Kwangsi and Kwangtung can without much difficulty find its way into Japanese hands and if shipment out of China to the United States is impossible it is not unlikely that, rather than stopping production, [producers?] may connive in smuggling wolfram through to the coast for sale to the Japanese.
Chairman of N. R. C. has stated that he will find it difficult to justify continued government financing of mineral production in the face of prolonged interruption of transport facilities and impossibility of sale to us. Having in mind his position and believing it desirable to prevent tungsten and possibly other minerals from falling into Japanese hands, Embassy suggests for consideration a plan whereby we might purchase the Chinese production of tungsten, tin and possibly antimony for delivery and storage at such convenient and safe points as Kunming or Yunnanyi and Lingling along the Chinese section of the Burma Road where they would be ready for transport out of China when facilities become available. For such a plan, it would be advisable to have a man such as described in paragraph 3 above. McKay himself, Embassy believes, would be qualified. It would also be advisable to have one experienced mining engineer. There is in Chungking Sergei Lavrov, American, whom Embassy believes to be well qualified. He has prepared for the Embassy a very useful memorandum on strategic minerals in China which is being forwarded to Department by air mail. These two Americans or others with semi-war qualifications would be sufficient either to carry out the plan outlined above and/or to do the work suggested by McKay.