811.20 Defense (M)/6365: Telegram

The Chargé in China ( Vincent ) to the Secretary of State

466. Paragraph 4 of Embassy’s 425, April 17, 3 p.m. The National Resources Commission has approached the Embassy with the request that Myitkyina and/or Yunnanyi be agreed upon as points of delivery for Chinese strategic metals. The N. R. C. is anxious to avoid cost and risk of shipment across India and wants payment for delivery alongside planes at the above mentioned points. It will provide personnel for handling forwarding through India if we desire but wishes to avoid financial responsibilities. General Magruder of the American Military Mission expressed the opinion some time ago that United States Army personnel in India which is organized to handle incoming war materials could handle forwarding of outgoing strategic materials. The N. R. C. requests an early reply and states that details may be worked out with its Foreign Trade Office representative in New York.

The N. R. C. request has been foreshadowed in the attitude of the Chairman of the Commission recently. It is motivated by a desire to obtain prompt payment for metals and by an apparent lack of confidence in the prospective arrangements for transportation through Burma and India.

The Embassy has again urged the N. R. C. to make haste in transporting stocks of strategic metals in Burma and at Wanting to Myitkyina and those in China to Yunnanyi for air transport when planes are available.

Vincent