811.20 Defense (M)/9957: Telegram

The Ambassador in China (Gauss) to the Secretary of State

1247. Following is current situation regarding strategic metals for information Metals Reserve.

1.
United States Army transport planes are being fully employed on west bound trip for transfer of Chinese troops from Kunming to India. Lend-Lease transport planes of CNAC are being similarly employed under United States Army control. This operation will continue for another 2 to 4 weeks.
2.
Arrivals of wolfram at Kunming are discouraging but it is hoped that improvement will be brought about through pressure on NRC. Temporary cessation of shipments will permit accumulation of small stocks but once planes recommence hauling cargo those stocks will be soon exhausted and it is doubtful that even with anticipated improvement arrival of wolfram at Kunming will be in sufficient quantity to occupy full plane space.
3.
Soviet trade representative has requested Embassy’s good offices in arranging for shipment by plane from Kunming to India of about 80 tons of mercury and 750 tons of tin. Russians are accepting these metals ex-warehouse Kunming from Chinese. Trade representative states that metals are urgently needed in Russia and is extremely anxious to obtain air transport to India.
4.
The Embassy proposes: to keep wolfram on priority for out shipment when operation described in paragraph 1 is completed; to give mercury for Russia equal treatment with wolfram; and to authorize shipment of tin for Russia when wolfram insufficient to employ space. This plan should provide for full utilization of space for several months. United States Army authorities will follow Embassy’s requests regarding priorities for strategic materials for planes subject to strictly military exigencies and needs. Does Metals Reserve approve foregoing plan?
Gauss