800.6354/135: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Kennedy)
758. Your 1332, August 31, 6 p.m. The Committee’s action in increasing the present quota to 60 percent is of course a move in the right direction. The Department is strongly of the opinion, however, that if the control scheme is to be continued all quota restriction should be removed for a period of months, or at least that the Committee should move immediately to provide a further substantial increase in quotas. It is felt that the Committee would be fully justified in such action for the following reasons:
- 1.
- Commercial stocks are very generally considered too low, especially in view of the war situation, and sufficient tin should be provided to add much more rapidly to such stocks than will be possible with a 60-percent release.
- 2.
- If the buffer stock is to serve a useful purpose from the standpoint of consumers, it should be built up again to a full 15,000 tons, or near that point, and sufficient tin should be released to make this possible, in addition to the building up of commercial stocks. From the standpoint of American consumers, it is particularly important [Page 928] that a fair proportion of Straits tin should be added to the buffer stock and constantly maintained in that stock.
For your information, this Government probably will wish to buy, during the next several months, a few thousand tons of tin for a war reserve stock. In the event that restriction has not been removed or liberal quotas arranged in the meantime, it would be desirable to secure a special quota release to cover such purchases. You may find a convenient opportunity to learn whether the British Government would be willing to make or to support a request for such a special quota.