811.20 Defense (M)/6827: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, June 4, 1942—9
p.m.
477. Reference your 590, May 23, and especially paragraph 3.
- 1.
- Arrangements have been concluded here for the modification of the Metals Reserve-National Resources Commission tungsten contract so as to provide for the payment of $19.50 per unit for tungsten, f. a. s. planes Yunnanyi, or other points agreed upon by the Chinese Government and this Government. This meets the request of your paragraph 3 in so far as tungsten is concerned. See Department’s no. 406, May 18.
- 2.
- The Department has had in mind that first priority for outgoing airplane shipments to India should be given to tungsten, silk, and bristles, without preference of one over the other, it being expected that mixed cargoes of these three materials would be the most effective method of transport. In view of limited extent of this service, the Department has not counted upon export of tin, antimony, or other Chinese products by air to India.
- 3.
- Combined Raw Materials Board has decided to allocate to Russia entire exportable surplus of Chinese tin from now until June 30, 1943. Present plan (which has not yet been fully worked out) contemplates that Metals Reserve Company will modify existing tin contracts with the CNRC—in a manner similar to that followed with the tungsten contracts—so as to provide for the purchase of the tin in storage points in China to be agreed upon by the Chinese and Soviet authorities, subject to your approval. Tin would then be made available to Soviet Russia under provisions of Lend-Lease and Soviet authorities would undertake transport of tin from points of purchase by northwest caravan route to Russia. These arrangements are being perfected and you will be kept informed of their progress. If successfully completed, this arrangement would seem to obviate danger of reduced production referred to in your paragraph 2.
- 4.
- In view of Japanese tin holdings, there seems no preclusive aspect in purchase of this metal. However, should plan above outlined prove abortive (which it is believed is unlikely), the Department will nevertheless give consideration to purchase of tin at suitable points in China in the hope that India air service may become sufficiently extended or that other means of transport may eventually be found. Your opinion on this point is desired, as well as any comments you may have to offer on the plan in general.
- 5.
- The Department desires that you do all in your power to see to it that no available space is unused on outgoing planes. As has been stated above first priority must be given to tungsten, bristles and [Page 658] silk and you are accordingly requested to use every effort to fill up all available space with these products, disregarding where necessary formalities as to inspection as well as other technicalities. If despite your efforts in this regard there still remains empty space, tin may be loaded but this should be done only as a last resort and after every effort has been made to fill the space with tungsten, bristles and silk.
- 6.
- It is to be assumed that the amount of available outgoing plane space from China will increase. You are accordingly requested to do everything possible to coordinate the delivery of tungsten, bristles and silk to points alongside planes so that all of the available cargo space will be utilized to transport these commodities. You are requested to inform the Department fully as to the plans for this coordination of shipments and to telegraph the Department generally on the whole subject covered by this telegram.
Hull