55 Mr S. M. Bruce, High Commissioner in London, to Mr J. A. Lyons, Prime Minister

Cablegram unnumbered LONDON, 4 August 1937, 8.34 p.m.

Urgent. Your telegram 2nd August. [1] 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 Kingdom industry.

BRUCE

1 Document 54.

[FA : A2937, YAMPI SOUND]