856D.6176/150: Telegram

The Chargé in Great Britain (Atherton) to the Secretary of State

85. Since my 82, February 28, 10 a.m., I had opportunity at the Foreign Office to discuss certain aspects of the Department’s 68, February 27, 7 p.m. I was informed that this evening the Colonial Office has no information, official or private, that an agreement has been completed yet by the producers’ committees, but that with the completion of this, the next step, according to the Foreign Office, will be for the Dutch Government to satisfy the Colonial Office that they can effectively control the native production in the Dutch East Indies. No further steps will be taken towards any restriction plan until this point has been satisfactorily settled in confidential discussions between the two Governments’ experts. Subsequently Great Britain, Holland, Indo-China, Sarawak and probably Siam will have a somewhat protracted discussion as to (1) whether a general rubber restriction scheme is possible. If the decision is in the affirmative the next point, according to Foreign Office, will be (2) to formulate the restriction scheme. In view of the academic distinction between (1) and (2), I interposed at this point and stated that certainly subsequent to (1) the Embassy or American Government should be informed in detail as to the objectives of this restriction scheme and be allowed to [Page 629] make its comments on it as the largest consumer of rubber before (2) took place. The Foreign Office point of view up to this time had been that (1) and (2) should be completed before the consuming countries were consulted as the producing countries were “pledged, etc. etc. etc.” under the clauses of the World Economic Conference. However, I feel I have orally made my point with the Foreign Office and have been asked to continue the discussions later in the week.

I have discussed the situation today with Minister Emmet16 en route to Holland.

I have an appointment with the Prime Minister on another matter Friday noon. Failing contrary instructions from the Department, in my discretion I shall outline the situation to him.

Atherton
  1. Grenville T. Emmet, appointed Minister to the Netherlands January 15, 1934; assumed duties March 21.