848A.24/8–144

The Minister in South Africa ( Holcomb ) to the Secretary of State

No. 41

Sir: I have the honor to enclose a memorandum9 prepared for me by Mr. S. H. Day, my Commercial Attaché, on the subject of a possible modification of the United States Government’s policy regarding the furnishing of supplies for the South African gold mines.

I have discussed this problem at length with Mr. Day and also with Mr. Bitting, head of the Johannesburg Office of the Foreign Economic Administration and am in complete accord with Mr. Day’s recommendations, particularly because I feel that unless some modification of the American policy is made shortly, American manufacturers producing mining equipment needed in the Union, will find themselves greatly handicapped after the war in endeavoring to re-establish themselves in this market.

I can think of no more effective method of paving the way for the re-entry into this market of American mining equipment than the release (so far as justified by military requirements) of a substantial amount of the machinery and other material long since ordered by and manufactured for Union mining companies, which, because of American export prohibitions have remained in storage there, while British manufacturers have been able to consider and fill orders in relatively substantial fashion.

In the foregoing connection I should also like to suggest that the Department may wish to discuss with the appropriate agencies, the possibility of reviewing the present American policy with respect to the [Page 261] export to South Africa of mining equipment and of supplies in general, which, in light of the improved military position, might now possibly be released.

Respectfully yours,

T. Holcomb
  1. Not printed.