893.6359 Wolfram Ore/73: Telegram
The Counselor of Embassy in China (Peek) to the Secretary of State
[Received February 5—3:26 p.m.]
64. My 51, January 29, 9 a.m. Wolfram exports. The French Ambassador42 on February 4 informed me that it was he who originated the plan for monopolization of Chinese exportation by France, Great Britain and the United States. He said that figures reaching him showed that the amount that China desires to ship to Russia far exceeds its consumption and surplus would go to Germany. However, he seemed to feel that it was also very important to conserve for Great Britain and France during the war all available supplies of this important commodity. He said that he had heard that one object of the journey of Francis Pan43 to the United States was to obtain a large additional commercial credit utilizing as security not only tung oil but also wolfram, tin and antimony. I inferred anxiety on his part lest an undue proportion of China’s natural resources be diverted to the United States. He remarked that Japanese military inroads and especially the reported capture of Ningpo rendered problematical the amount of wolfram obtainable. I observed that the American [Page 640] Embassy had no details of credit negotiations; that they came within the field of the Treasury Department and that arrangements between Export-Import Bank and the Universal Trading Corporation seemed to have the nature of a commercial contract.
Repeated to Peiping, Hong Kong, Shanghai; Hong Kong please instruct Hanoi.