811.20 Defense (M)/8172: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received August 8—8:20 a.m.]
919. Department’s 689, August 1, 9 p.m.29 Stocks of metallic tin were reported in Kunming’s No. 39, July 3, 10 a.m.30 Of the 4,000 tons in Kunming and vicinity, 300 refined to 99% are immediately available for shipment. Balance is sub-standard which could be readily refined if there were demand for export.
Production is being maintained at rate of 500 to 700 tons monthly, but Kwok of National Resources Commission states that curtailment necessary soon if there is no demand from abroad. He desires to know as soon as possible (1) whether Metals Reserve wishes to purchase tin; (2) if so, in what amount; and, (3) price.
Kwok states that present stocks more than ample, considering limited transport facilities in China, for shipments to Russia via Sinkiang. National Resources Commission hopes to be able to deliver some 2,000 tons of tin and tungsten to Hami for Russians by the end of this year, but is not confident that available transport will enable it to do so.
In view of the limited air transport facilities out of Kunming (about 75 tons a week now with prospects of increase uncertain) it seems to Embassy that decision regarding purchase of tin depends on whether tungsten or tin is more urgently needed. Preclusive or psychological factors should not play part in decision.
Kwok requests information regarding purchase arrangements 51 tons of tin shipped from Kunming in June (see Kunming’s telegram 39).