856D.6176/183: Telegram
The Ambassador in Great Britain (Bingham) to the Secretary of State
[Received March 19—3:42 p.m.]
118. Your 100, March 15, 6 p.m. May I ask that the following information be kept strictly confidential. No copy has been forwarded to The Hague.
- 1.
- (a) It is expected a producers’ agreement may be reached in about 10 days. The delay has been brought about in principal measure by the inaccessibility [sic] of the Dutch Government to give assurances acceptable to the British concerning control of the native growers. (It is believed here that it is for this reason Dutch sources have been willing “to leak information” impugning intent of British program).
- (b) And secondly a similar control problem in Siam and Indo-China.
- 2.
- The British Government is not actually taking any part in the negotiations but nevertheless have in extended preliminary conversations with the producers’ representatives before the Conference opened reserved its right to advise trades since any scheme can only be operated under Government accord. During producers’ negotiations Government has informally expressed what its probable position would be on certain hypothetical questions which were asked.
- 3.
- I expect within 10 days a complete and full note in reply to the one I addressed to the Foreign Office based on Department’s 75, March 1, 2 p.m. This note I understand will explain fully the reason why present agreement will not contain a maximum price as was the basis of the Stevenson Plan but will rather attempt to make “the curve of [Page 636] production coincide with the curve of demand.” I am informed that British manufacturers are in accord with the Government’s estimate that the danger in fixing a maximum price would be the speculative tendency to maintain the price of rubber at the maximum level, which would be contrary to the intent of the plan. Proposed British note of reply will give full assurances on second question in paragraph 3.
Answering questions 4 and 5 I understand that agreement provides for consumer representation in all committees that deal with the question of price or price fixing.
I have received informal assurance subject to the approval of Colonial Secretary that when the British Government’s note of reply to my representations based on Department’s 75, March 1, 2 p.m., is ready for delivery, presumably in 10 days, it will be handed to an Embassy representative at the Foreign Office. Cranmer the Government expert will also be present and the Embassy representative may raise any questions he desires in connection with the note itself or present to the Government expert a questionnaire previously prepared which the Government expert will endeavor to answer in the course of the conversations or failing so with the least possible delay. I venture accordingly to suggest that a questionnaire of desired information be prepared by the Department and forwarded the Embassy by telegraph or written instruction with the least possible delay.