811.20 Defense (M)/10207: Telegram

The Secretary of State to the Ambassador in China (Gauss)

1148. Your no. 1315 of November 11, 1 p.m. In accordance with the Decisions of the Combined Raw Materials Board, the entire exportable surplus of Chinese tin has been allocated to Soviet Russia, with the exception of a maximum of 1100 tons per annum for India. In compensation for this Indian allotment, a corresponding amount of U. K. tin would be shipped to Russia. Any Chinese tin purchased by Metals Reserve would thus be shipped to Russia subject to the proviso regarding India. As stated in the Department’s no. 1103 of November 17, 10 p.m. Metals Reserve has no objection to tin purchased by the Russians being given priority in air shipment over tin delivered under Metals Reserve contract as in either case the destination is the same.

With regard to your statement that deliveries of tungsten to airport may not come to more than 500 tons per month, Metals Reserve [Page 671] is interested to know whether there is anything that might be done here to assist the Chinese in improving transportation. Have you any suggestions?

Hull