811.20 Defense (M)/1122a: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received December 31—12:15 p.m.]
1564. For Metals Reserve. Wolfram deliveries are not coming up to expectations and we are again faced with the prospect of outgoing planes not having sufficient cargo; this despite deliveries of tin in ratio of 1 to 2 of wolfram. NRC suggests we accept advance deliveries of tin against future deliveries of wolfram. Embassy proposes to authorize the acceptance of 1,000 tons of tin for early delivery against promised delivery of 2,000 tons of wolfram by end of April. Request prompt reply giving Metals Reserve’s reaction to this proposal inasmuch as we should begin acceptances early in January. This plan will meet present situation. Hope that it will be unnecessary to accept further tin deliveries until 2,000 tons of wolfram are delivered and that Chinese will be able to deliver 2,000 tons of wolfram in the 4 months period allowed. However, if Army planes are able to take out average of 1,000 tons a month as now seems possible, it will be necessary to provide an additional 1,000 tons of cargo and Embassy has in mind suggesting that tin under contract to Russia be used to take up slack.