M of M/2688/Hong Kong

C. D.

[R. 17 JAN.

po

63301

3301

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As regards the question of the grant of licences for export of

Wolfram to the United States of America, Mr. Churchill is anxious that

British firms in the Colony should not feel that any unfair discrimin-

ation is being made against them in favour of American firms » I am

accordingly to suggest that, subject to Mr. Long's approval, arrangé-

ments should be made whereby the licences to be issued for export of

wolfram from the Colony should be in the proportion of two-thirds in

respect of British firms and one-third in respect of Frogoh firms, and

that in neither case should licences be granted except for reasonably

early shipments.

I am to add for the confidential information of Mr. Long,

that Mr. Churchill's intention is that all wolfram ore shipped by British

firms to this country should be divided equally between this country and

France, so that in effect all Chinese wolfram ore would ultimately be

divided in equal thirds between this country, France and the United

States of America. He is still however of opinion, as stated in this

Department's letter CKV/C/191 of the 27th. December, that as a general

rule all purchases of wolfram in Hong Kong for the benefit of the French

Government should be made through his Department, and that direct shipment

of wolfram to French ports should not be permitted. He has, however,

been requested by the Commission Française des Munitions, in London,

to facilitate the export of 25 tons of wolfram, which had been sold by

a firm of C.A.&.H.Niohola, in Hong Kong, to a firn in France, and that

KM

as this transaction was arranged before this Department's letter of the

27th. December, was written, he considers that an exception in this part-

icular case might properly be made.

In the circumstances the draft telegram enclosed with your

letter of the 3rd. January, would not appear, in its present form, to

meet the situation, and Mr. Churchill would be glad if a telegram

embodying the modifications above suggested were sent to the Government

of Hong Kong.

I am, Sir,

Your obedient Servant,

Downing Street,

On Quarto for Mr. Dixon's signature

17-

January, 1918.

Ind

DRAFT.

F.V.EACON ESQ.,M.F.E.

MINUTE.

Mr. Dixon

Mr. Ewell

/4/1/18

Mr. Collin 16

Mr. Grindle.

Mr. Lambert.

Mr. Bead.

Sir G. Fiddes

Mr. Hewins.

Mr. Long

Ginnu

Comb

Auod 5168

Dear Bacon,

With reference to your officbl

letter CFV/C/484 of the lath of January,

I enclose a revised draft telegram

to the Governor of Hong Kong with regard

to Chinese wolfram.

The telegram

incidentally deals with the Governor's

telegram of the 16th January, a copy of

(2448)

which we sent to you on the 15th January.

Draft telegram to Hong Kong

January, 19TE, (draft herewith)

2 dfts

Do you concur in this diaft?

As regards the fourth para-

grapa of your letter we assume that the

British and French firms mentioned are

British and French firms in Hong Kong

wishing to tranship Chinese wolfram to

the United States, and that what is

said in that paragraph applies to all

shipments of wolfram so the United