811.20 Defense (M)/10458c: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, November 14,
1942—7 p.m.
1086. With regard to tin and tungsten contracts Metals Reserve advises that following points have been agreed upon with the Chinese National Resources Commission.
- 1.
- Tungsten price will be raised to $22.60 short ton unit at warehouse Kunming for ore of standard specifications.
- 2.
- Premiums and penalties for ore not of standard specifications will be in accordance with contract of Metals Reserve for Bolivian ores.
- 3.
- Instead of 65% as at present Metals Reserve will make payment of 75% of ore value accepted by their representative.
- 4.
- New tungsten basis will be regarded effective as of November 1.
- 5.
- Tin price will be fixed at 53 cents per pound f. o. b. planes Kunming for tin of 99.8% purity.
- 6.
- Penalties for tin of less purity than figure mentioned in 5 will be based on discounts established in U. S. under OPA price schedule.
Contract to make effective these changes is now in course of preparation.
As Metals Reserve has made very substantial concessions we hope that production and deliveries tungsten to Kunming will be greatly expanded. Please keep us fully advised.
Hull