841.6176/38: Telegram
The Ambassador in Great Britain (Houghton) to the Secretary of State
[Received November 24—2 p.m.]
357. Department’s telegram No. 343 dated November 21. This morning I saw Chamberlain and reminded him that for some months [Page 262] we had been discussing the rubber situation without much apparent result. I suggested that I would be glad to know if it was the intention of his Government to take no remedial steps. Naturally Chamberlain protested that this was not his Government’s attitude and he informed me that a committee of the Cabinet had been formed as a result of our talk last month, which committee was now actively studying the entire rubber situation. Chamberlain also stated that Colonial Secretary Amery in particular was investigating the Stevenson Plan’s working. I told Chamberlain then that the situation in the United States was really serious, adding that the market apparently was getting into the hands of speculators. The two points raised in your last telegram on this subject were also laid before him, and he carefully noted both, stating that before he left for Geneva early next week he would give me an answer.
Chamberlain remarked during our conversation that representatives of the Rubber Association had recently been here and had discussed the possibility of a long-time contract with the proper authorities and that this arrangement was also being considered at the present time. I have no information whatsoever with respect to any such move but I suggest that it would be futile for me to discuss the matter further with Chamberlain if the Rubber Association is now undertaking to start direct negotiations.