Office of the Historian

856D.6176/230: Telegram

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

The Hague, April 28, 1934—4 p.m.
[Received 6 p.m.]

30. Rubber producers’ restriction agreement was signed this morning and a copy, handed me in strict confidence, going forward in pouch arriving Washington May 9th.38 Agreement is in keeping with outline given by British Government unofficially to London Embassy. Here follow certain provisions:

(a)
Restriction includes all kinds of rubber and latex, in any state of concentration, also all articles and things manufactured wholly or partly of rubber.
(b)
Restriction includes French Indo-China and Siam.
(c)
Representatives to be appointed by Governments, in eventual international regulation committee, are for Great Britain 11, including Ceylon 2, India 1, North Borneo 1, Sarawak 1, the Netherlands 5, Indo-China 1, Siam 1. Basic quotas established for each year 1934 to 1938, and vote in regulation committee based on respective proportion of tonnage in basic quotas.
(d)
Governments involved are invited forthwith to enact legislation for the purpose of carrying provisions into effect. Such legislation to be reciprocal and must cover minimum period from 1st of June, 1934 to 31st December, 1938.
(e)
Governments to have complete control over new planting.

Foreign Office also sent me a confidential note this morning, enclosing the copy of the agreement and replying to the aide-mémoire left [Page 658] with the Minister for Foreign Affairs on April 10th39 pursuant to Department’s telegraphic instruction number 19, April 7, noon.40 This note states:

(a)
That the arrangement contained in the agreement for the protection of consumers far exceeds requirements of section D of general resolution of the London Conference in that it provides for a panel of three European and American representatives of rubber manufacturers to tender advice to the regulations committee.
(b)
The agreement mentions “a fair and equitable price” but not “a stable price” since, by its very nature, the agreement should provide a stable price. The powers accorded the international committee permit it to make rapid changes in export quotas and this should guarantee against “extreme price movements.” The international committee may also undertake the creation of “supply reserves.”

The note also contains reassurances concerning the instructions to be given the Netherlands delegates on the international committee, i. e., that they will be in favor of giving fullest possible attention to the interests of consumers, have agreed that they will support the plan of “supply reserves” and that, insofar as price control is concerned, the successful carrying out of the restriction plan in the Netherlands Indies demands that extreme high prices shall be avoided.

Under Secretary will supply further confidential information Monday morning. Press to be informed Monday.

Emmet
  1. Despatch No. 19, April 30, not printed.↩
  2. The Minister in the Netherlands stated in his despatch No. 8, April 11, that he used the Department’s telegram No. 131, April 2, 8 p.m., to the Ambassador in Great Britain (p. 642), as a guide in writing this aide-mémoire, a copy of which he enclosed (856D.6176/218).↩
  3. Not printed; see last paragraph of telegram No. 140, April 7, noon, to the Ambassador in Great Britain, p. 645.↩