856D.6176/158: Telegram (part air)
The Minister in the Netherlands (Swenson) to the Secretary of State
[Received March 6—7:15 a.m.]
9. Department’s views telegram No. 11, February 27, 7 p.m., communicated to the Netherlands Government February 28.
In a conference with Dutch Rubber Restriction Committee yesterday afternoon Colijn stated that he had decided on an export tax on [Page 631] native Dutch East Indies rubber involving a maximum price of four pence gold. Replying to a question as to how long this system including the maximum price would be maintained he said:
“I will do away with it as soon as possible but I want to tell you frankly that the American Government has shown great interest in the question of price to consumers. There has been diplomatic pressure and I am obliged to reckon with the United States even after an eventual abandonment of the export tax system”.
My informant Baron Van Lynden asked if Colijn did not consider it fair to make allowances for the big foreign manufacturers operating their own established estates such as the United States Rubber Company, Goodyear and Dunlop, the more so as these companies produce special grades of rubber which they cannot obtain in the market. Colijn replied that in his opinion it seemed almost impossible to discriminate between one producer and another. Van Lynden thinks that with pressure from the United States Government some concession may be obtained on this point. It is now expected that agreement will be signed by the Dutch and British committees before the 6th or 7th instant. Colijn expressed the wish that it might be put into effect by May 1st but intimated that it might require more time.