856D.6176/137: Telegram

The Secretary of State to the Minister in the Netherlands (Swenson)

10. Department is informed confidentially that at meeting in London on February 20 producers in both British and Dutch territories expressed willingness to accept agreement. It might be signed before March 1 in order that the bill pass through the legislatures of Ceylon and Burma.

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The Department has not secured either the Dutch or British Governments’ adequate assurances looking towards the representation and protection of the consumers or assurances that the control cannot be used to unduly enhance prices (which would probably only be safeguarded by setting a definite maximum price at which all rubber required could be secured). The idea of a committee of three mentioned in your No. 4 of February 14 would not seem to take care of the situation unless it were provided that this committee, though possessing no vote, could participate in the meetings of the other committee or otherwise keep themselves currently and fully informed.

Department furthermore advised that price four pence gold accepted but still does not understand significance of that price. Please advise the Department by cable as it seems unadvisable to await arrival mail despatch.

Within your discretion, after you have sounded out the situation sufficiently to be sure that the Department’s information is correct, you may make the Department’s views of written record by submitting a note to the Dutch Government.

Hull