893.6359 Wolfram Ore/72: Telegram

The Counselor of Embassy in China (Peck) to the Secretary of State

51. Reference Department’s mail instruction 176, September 12, 1939,39 wolfram exports.

1.
The person referred to40 in line 9, page 1, of the Embassy’s despatch No. 331, September 22, 1939,41 informed a member of the staff of the Embassy January 17 that Sino-Soviet relations continued satisfactory, but that some concern was felt by Chinese over the fact [Page 639] that the British and French were exerting pressure to have the Chinese limit shipments of wolfram to Russia to amounts which would preclude the possibility of reshipment of any to Germany; that Chinese had declined to comply with French request to make shipments to Russia on a “quota” basis; that Chinese preferred to ship to Russia since credits bring ten times the value of goods exported in the form of goods received in exchange whereas sales to French and British bring only the actual value of exports. It seemed likely that French and British would continue to insist on guarantee that no wolfram stocks exported from Indo-China and/or Hong Kong were destined ultimately for Germany, but informant seemed hopeful of a solution which would not affect barter trade with Soviets adversely.
2.
It was learned from the British Embassy on January 26 that the British have proposed to the French and American Governments a plan whereby the three countries would purchase the entire production of wolfram.

Repeated to Peiping, Hong Kong, Shanghai. Hong Kong please inform Hanoi.

Peck
  1. Foreign Relations, 1939, vol. iii, p. 710.
  2. T. F Tsiang, Director of the Political Department of the Chinese Executive Yuan
  3. Not printed