Office of the Historian

893.796/287: Telegram

The Ambassador in China (Johnson) to the Secretary of State38

Chungking, December 27, 1940—10 a.m.
[Received December 27—7:15 a.m.]

636. The National Resources Commission of the National Government of China has been discussing with W. L. Bond, representative in China for Pan American Airways through the latter’s interests in China National Aviation Corporation the question of flying out wolfram ore from China to Hong Kong. It is understood that all or practically all of China’s production of wolfram ore has been purchased by the Metal Reserve Company of the Reconstruction Finance Corporation which is buying on behalf of the American Government.

At present the only practical means of export is via the Burma Road and as the larger part of the ore is produced in Kiangsi and Hunan this route is difficult. Furthermore the capacity of the Burma Road is limited and is probably already overloaded.

[Page 714]

I have been approached by Doctor Wong Wen-hao, head of the National Resources Commission, through the Pekin Syndicate with the request to approach the United States Government as to whether, if it is interested in obtaining larger supplies of wolfram in the near future it would consider cooperating in the patter of air transport in two ways: firstly, financially and secondly, by permitting the planes engaged in this business to fly under the American flag. I understand that to make the proposition of air transport possible as [a?] subsidy of at least United States $100 per ton would be necessary. Bond quotes United States $600 per ton for the round trip from Hong Kong to Hengyang or Kweilin and this is a large figure particularly as it is difficult to find return freight of sufficient value.

Bond states he could transport immediately 100 tons per month minimum and between 300 and 500 tons per month within 6 months.

I respectfully suggest, unless objection is perceived, that the Department bring this matter to the attention of the appropriate authorities of the American Government for their consideration and reply.

Johnson
  1. Paraphrase of this telegram was transmitted by the Department on December 27 for comment to the Metals Reserve Company of the Federal Loan Agency.↩