CO129-452 - Others & Individuals - 1918 — Page 129

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G.R.W/C/484.

Dear Mr. Dixon,

8th April 1918.

I am not quite sure that the telegram of the 9th March to the Governor of Hong Kong, concerning the shipment by Messrs Rudolf Wolf of 12 tons of Wolfram to the United States, a copy of which was enclosed with Colonial Office letter 11743 of the lith March, may not give rise to some misunderstanding.

When Messrs Rudolf Wolff offered the material to the Ministry, they were informed as to the official price that had been fixed for purchase of Wolfram from Hong Tong. They then stated that they preferred to ship the Wolfram to New York and asked for a licence to do so, to which the Ministry replied that the question of licences was a matter for the decision of the Government of Hong Kong.

As long as the Ministry obtain two thirds of the supply of Wolfram available through Hong Kong, the Ministry have no objection to the export of the remainder to the United States by either British or American Firms. Higher prices are apparently obtainable for Wolfram in America although there are negotiations on foot with the Americans with a view to climinating competitive buying, but if British firms in Hong Kong could obtain a fair share of the export to America, it is con- sidered that the Ministry would be able to secure the propoer proportion within the limit of the authorised price.

Other firms are putting forward to the Ministry offers at high prices, apparently with the object of getting a refusal and then being allowed to ship to the United States. What is important, is that the balance of two thirds of this material to this country for this country and France and one third to the United States should be maintained, and it is anticipated that if this were done, the prices would automatically adjust themselves.

send any necessary telegram misunderstanding arising.

Perhaps you would be so good as to to the Governor which would prevent any

Yours very truly,

WAS