Your telegram of 30th July reference nickel. [1] Ministry of
Economic Warfare has given me a statement of which the following
is a summary:

In December 1939 arrangements were made with the United States to
prevent the shipment of molybdenum and nickel to Japan and Russia,
arrangements regarding nickel chiefly through the International
Nickel Company. As a result apart from deliveries of outstanding
1939 contracts Japan has received no nickel in 1940.

Japan has made both commercial and diplomatic attempt to secure
nickel through political offensives chiefly directed against the
United Kingdom and Canada. Since the International Nickel Company
is registered in Canada with many United States shareholders close
understanding regarding nickel is a matter of importance in
political relations with the United States and it is of great
importance that no nickel should be supplied to Japan save with
the concurrence of the State Department.

SPECIALLY SECRET. Most secretly learnt that the Japanese
Government has instructed Consul at Noumea [2] to obtain New
Caledonian output. International Nickel Company are accordingly
being urged to act on the lines indicated in my telegram of 17th
July. [3]

Ministry of Economic Warfare consider it possible although
unlikely owing to small amount involved that the Commonwealth
Government purchase might either lead to Japanese efforts to
obtain the remainder of the output or to representations by
Japanese to the Commonwealth Government.

Ministry of Economic Warfare suggest advisability of keeping
Australian contract secret for the present.

BRUCE