Your telegram No. 598 New Caledonian nickel ore. [1]

For the following reasons we agree that contemplated instruction
to Sautot [2] should go forward-
(1) It is desirable that Free French should be identified with
United States and British Empire policy on Japanese economic
measures.

(2) It deprives Japan of an important strategical material and
will bring New Caledonian policy into line with Commonwealth
Government policy.

(3) We believe that failure on part of New Caledonian authorities
to take firm stand may invite Japanese pressure.

We are now purchasing all nickel matte produced by three furnaces
and this should enable any production of ore by Japanese mines to
be purchased by Le Nickel.

You are no doubt aware that the 5,000 tons referred to in your
telegram is within limits of 24,000 tons previously approved by
United Kingdom Government and Free French headquarters for issue
of licences for export to Japan. Reservation was made however that
revocation of licences could be made at any time.

It would be of interest to us to learn whether any embargo has
been imposed on export of iron ore obtained from Japanese owned
mines in Malaya. If you are still permitting export then the
Japanese will very likely acquaint Sautot of this fact. [3]