856D.6176/149: Telegram
The Secretary of State to the Ambassador in Great Britain (Bingham)
75. Department’s information as to stage of discussion of rubber restriction plan differs from that which the letter of your confidential correspondent quoted in your 82, February 28, 10 a.m. and the Colonial Office as stated in your 85, February 28, 6 p.m. pictures. For your information alone, Colijn told Swenson on the 26th that he had just been informed that the restriction agreement would be signed the following day by the producers’ committees, and that he, Colijn, thought it likely that the agreement would be adopted by governments. From other sources Department’s information is that the British rubber growers are about to sign agreement in order to secure action by Ceylon and Burma Governments before adjournment of their legislatures in the near future.
Department has had no definite word to the effect that agreement has been actually signed by the producers’ groups but all signs would seem to indicate that point not far off. Therefore Department does not understand view of the Colonial Office that the business of formulating a restriction scheme is still a matter for the future, especially in the light of Department’s information that matter has been discussed already between Colijn and the British Government.
The type of general assurance stated in the personal and confidential letter that you quote in your 82 seems to the Department unsatisfactory. The assurance that “His Majesty’s Government would see to it that consuming interests will be given reasonable and continuing opportunities to express their views” would seem inadequate. The [Page 630] mere power to express views would be of little practical importance. Consuming interests should have actual representation in the plan and be in a position to know from day to day what is going on.
As regards the price question mere assurances regarding future intention and general references to the World Economic Conference resolution would also seem inadequate. Experience with the first rubber restriction plan and our observation of the tin restriction plan support this judgment. Definite price protection is needed.
The Department approves your intention of putting the whole matter before the Prime Minister tomorrow. It also suggests that its position be made of written record by you in the Colonial Office. You may make clear with suitable firmness to both the Prime Minister and Government authorities that prospect that the flow of American supplies of tin and rubber, two vital raw materials, for the supply of which this country is dependent on foreign production might be subject both as to supply and price to the arbitrary decision of producers’ groups in which the American consumer interest has no effective influence, causes serious apprehension here.
You will of course take care in discussing this matter with the British not to say anything which will embarrass Colijn.