800.6354/159: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received October 25—12:42 a.m.]
2150. Todd’s assistant had a long talk with Campbell this morning the substance of which he has cabled to Todd. As a result of my intervention MacDonald had a meeting this afternoon with Campbell and other Colonial Office officials. The Colonial Office states in confidence that Malaya and the Dutch East Indies are now producing “all requisitioned” given the present labor force which they consider adequate on a long view and which they do not wish temporarily to increase during wartime. They emphasize the manner in which tin production has been stepped up from an average of 40 per cent for the first half of the year to an average of 95 per cent for the second half. They also reiterate the considerations which I have previously reported that war will not produce a large net increase in tin consumption and when the restocking movement comes to a halt a serious problem would have been created for producers if they had temporarily stepped up production unduly through the acquisition of further labor, et cetera. Campbell states that his latest figures indicate that whereas the normal stocks afloat to the United States run to 4,500 tons there is afloat to the United States 7,800 tons and that between 20,000 and 25,000 tons is either on its way to the United States or has been sold forward and is in the process of smelting. The Colonial Office has heard that some of the Malayan Chinese miners have been reluctant to sell their ore hoping for a further rise in price and instructions [Page 937] have been despatched to the Governor of Malaya with a view to accelerating the movement of this ore to the smelters.
The Colonial Office states that although “no foreigners will be present” a meeting will be held on Friday at which will be present the Controller of Metals, officials of the Ministry of Supply and others concerned with tin.
The size of the American consumption figure quoted in the Department’s 1277, October 23, 5 p.m. made an impression that I felt they were skeptical of its verity. Any further details which can be supplied before the Friday meeting might prove useful.