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Mr. Valey
Mr. N.. Young.
Export Credits for china.
Lord Strathallan called on me on the 21st March
to discuss Yunnan tin, Mr. Calder of the Jolonial Office
also being present.
Lord Strathallan gave me the attached memorandum
which he has been discussing with Captain Lyttleton of the
British Vetal Corporation. The British Metal Corporation
had discussed a scheme for the erection of a smelting works
in Yunnan some eighteen months go, but for various reasous
nothing came of the project at that time. They are, however,
now prepared to take the question up again, particularly if
some assurance can be obtained from the Chinese Government
that they would join the International Tin Regulation Scheme.
Mr. Calder pointed out that strong objectiona
would be raised by the mpire tin producers if British
capital was used to develop Chinese production while they
were required to restrict their production. For this
reason the Colonial office had been opposed to the scheme
discussed in 1937, and their efforts to get China into the
tin control scheme convinced them that restriction of
Chinese production was not possible; therefore they were
opposed to the present project. They did not believe that
any substantial development of Chinese production would take
place unless either the British or American Goverment
financed it. The Chinese tin field was the one free area
and if the Americans wanted to develop it we could not
object; but there was no reason why we should do it.
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