CO129-448 - Governor Sir May - 1918 [4-6] — Page 391

180

(To accompany enclosure /)

COP Y.

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Notes on the Wolfram Position.

1. The Chinese firm of Swee Kee has obtained from Peking 5 mining

licences for Kwong Tung and they have secured respect for these licences from the "rebel" Government (including apparently General Chan Kwing Ming) by taking in a Japanese partner, which "secures the protection of the Japanese Consul". It will be remembered that the head of this firm, one Lam Tsai Chuen, was recommended to us by the Straite Government as a buyer of wolfram for the

Ministry of Munitions.

2. The Canton Authorities are endeavouring to negociate a loan of $2,000,000 from the M. B. K. in return for the monopoly of all wolfram mining in the Province. The proposition is not viewed very favourably by the M. B. K. at present.

The above comes direct from the representatives of the firms

concerned.

3. Exports of Chinese wolfram via Hong Kong for the 2nd. half of 1917

were 430 tons and for the first 4 months of 1918 487 tons. Ex-

ports via Swatow for the same two periods were about 450 tons, making a total of 1367 tons for 10 months, which is nearly 1/7th of the World's record output for a year and nearly 2/5ths of the average for the British Empire, according to the enclosure in 19).

Possibly these figures might convince the Imperial Government that the wisest course would have been to allow free export to U. S. A.

until prices between that country and the U. K. had levelled up.

(sd.) D. W. Tratmen,

Supt. of Imports & Exports

10. 5. 18.

# ́s. of S.'s Circular Despatch of 26th. February, 1918.