693.119/7–1449: Telegram

Memorandum of Telephone Conversation, by Mr. Stephen C. Brown of the Division of Commercial Policy

Mr. Klerekoper of US Steel Export Co. telephoned me on July 11 and told me, with reference to our conversation of last week,92 that while in New York over the week-end he had learned from his head office that Jardine, Matheson & Company of Shanghai had asked for quotations on 75,000 tons of steel rails for delivery to Shanghai. The request came through Jardine’s agents in New York, Balfour, Guthrie and Company.

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Mr. Klerekoper said that his company regarded the order as unusual in present circumstances, and very large. The cost at present market prices would be US$7,500,000. No information had been received as to the place or end-use of these rails. He said that in view of our conversation last week his firm would quote on this inquiry. They protected themselves, of course, on the question of export licenses, and their terms were letter-of-credit in New York.

I thanked him for this information and said we would appreciate any further information on unusual inquiries from China.

  1. On July 6 Mr. Klerekoper had informed Mr. Brown that U.S. Steel Export Co. did not want to engage in trade contrary to the policy of the Department of State and he had been told by Mr. Brown that so far he knew of no change of policy (693.119/7–649).