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1 pointed out that both the Americans and
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ourselves were giving credits to China. The Americans
had taken wood oil as security for their credits, and they
were known to be considering other exports as security.
The Treasury felt that we ought to have as good security as
the Americans for our credits and tin was the most obvious
possibility. The proposal involved the erection or a
smelting works, which would improve the quality of
Chinese tin and control of the marketing of the produce,
but it did not provide for the development of new mines.
It would surely be helpful to get control of the
Chinese production. It probably was impossible to ask the
Chinese Goverment to restrict production, but we might
ask them to undertake not to expand production.
Lord Strathullan said that T.V. Soong had great
influence with the Yunnan Goverment and he believed that
he would use this influence to get an assurance that
Chinese production would not be expanded. Mr. Calder
agreed that the objections of the myire producers would
be largely met if we could assured that the amount of
Chinese tin put on the international markets was not
increased.
It was arranged that Lord Strathallan should
pursue his discussions with Captain Lyttleton and should
siso try and ascertain from Mr. T.V. doeng what prospects
there were of the Chinese Government undertaking not to
expand production. Meanwhile, the question whether
H.^. Government should assist the scheme by means of
export credits or otherwise sãould stand over for further
consideration on ita merit:
(Sgd.) F. W. LEITH-ROSS,
52nd March, 1939.
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