856D.6176/119
The Minister in the Netherlands (Swenson) to the Acting Secretary of State
[Received December 29.]
Sir: With reference to the Department’s telegram No. 34, of December 8, 4 p.m., 1933, I have the honor to report that I called on the Minister for the Colonies, who is also Premier, yesterday, by appointment, [Page 617] and informed him of the American Government’s very great interest in the international plan under consideration for the restriction of rubber output.
After having called attention to the fact that present negotiations are not official, being conducted between the producers of the Netherlands and Great Britain, and stating that the Governments will have to approve or disapprove the plan in due time, adding that he had no definite opinion as to the success of the pending negotiations which might drag out for another year, Dr. Colijn expressed his views as follows:
“We adhere to the principles set forth in the resolution of the subcommittee of the Monetary and Economic Conference, and I am particularly in sympathy with Section 3 (d), referring to cooperation of the consuming interests in the importing countries. I may say in this connection that I insisted that Baron van Lynden, the director of the United States Rubber Plantations, be made a member of the Dutch committee of producers which conducts negotiations with the British producers. I did this because I wanted to indicate that I was disposed to give fair consideration to the consumers interests.
“As to the price of production, leaving out the less efficient estates, three pence gold would, in my opinion, be a fair figure of production cost, including depreciation. The producers have asked for a price of six pence gold. There is no agreement as yet to the price level but I consider four pence gold a fair selling price. I do not think that the British and French Governments are likely to insist on six pence gold. France being a larger consumer than producer, I should think she would be favorable to the lower figure. The plan being formulated will likely contain a provision preventing the rise of price above the level agreed upon, somewhat along the lines of the Chadbourne sugar plan.”
Dr. Colijn told me that an agent of the Goodyear Rubber Company, accompanied by the local representative, was to see him at half past four o’clock. He did not know for what special purpose, but surmised that it was to discuss the possible establishment of a factory in Java, with a view to benefiting from an advantageous treatment under an international restriction plan of output. The Minister said that he would not be in a position to commit himself at the present time but simply take the matter under consideration.
Respectfully yours,