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OOPY OF MEMORANDUM LEFT BY LORD STRATHALLAN
21st March, 1939.
115
China's tin production is centred in Yunnan, the
annual output being from 8,000 to 10,000 tons. of this.
some 3,000 to 4,000 tons is of a quality marketable
internationally, the balance being sold only at a
discount.
If a modern amelting plant were set up in Yunnan
it would draw the native ore production for the reason
that it would best pay the native producers and the
resultant refined tin would also be internationally
marketable. China is not a member of the International
Tin Cartel.
It is suggested that the present 3,000 to 4,000
tons of tin which is internationally marketable be used
as the basis of a cash advance or a material credit or
a combination of both.
Following the procedure laid down
when the $25,000,000 credit was extended by America, a
Corporation might be formed over here to handle the
business. This Corporation while largely owned by
Chinese interests, should, however, also have a British
participation. It would undertake to buy firm the present
Chinese Marketable tin at the average market price of
Bay 30 days ruling after the arrival of each shipment,
this realising annually between £600,000 to £800,000 cash,
and it would pay this money us instructed towards the
reimbursement of the credit extended. Members of the
Corporation to be formed might be the Chinese Government,
the China Development Finance Corporation representing
2.
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