55 Mr S. M. Bruce, High Commissioner in London, to Mr J. A. Lyons, Prime Minister
Urgent. Your telegram 2nd August.  Matter has been discussed
with Defence and Board of Trade Authorities who advise as follows.
Although there has been a certain shortage of iron ore it is not
lack of known deposits but inadequate output obtainable from those
already known and working which has failed to meet requirements
and therefore situation has not changed since their previously
expressed views in 1936 so as to lead them to modify what they
then said about the projected development of the Yampi Sound ores.
Above view expressed after Board of Trade had consulted British
Iron and Steel Federation who are of opinion that the deposits
could not in normal times be economically developed for the United
[FA : A2937, YAMPI SOUND]