811.20 Defense (M)/7639: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received 12:21 p.m.]
817. Your 603, July 7. The answer to inquiry in second paragraph is affirmative. Embassy has not been able to ascertain what part of this year’s production earmarked for Russia is actually ready for export to Russia. Transportation to Lanchow is, as with other materials, the principal problem.
Irrespective of commitments to Russia, there are now in and near Kunming, according to information given Yincent while he was in Kunming by Director of Foreign Trade Office of National Resources Commission, actually 75 tons (rather than 35 tons as mentioned in Embassy’s 691, June 11) readily available for export to United States. The Director has made an offer in writing to sell this mercury to us f. o. b. plane Kunming for United States dollars 194 per flask and has suggested that, due to difficulty opening and sealing flasks, sampling be done in New York and arrangement be made to accept gross weight in Kunming as provisional basis for payment of 65% of the agreed price.