856D.6176/311
The Chargé in the Netherlands (Wilson) to the Secretary of State
[Received December 13.]
Sir: I have the honor to inform the Department that the rubber restriction which has been in effect some six months has proven, in so far as the Netherlands is concerned, fairly successful. Little difficulties have arisen in regard to the method of control of native rubber production but these are being ironed out and as they have been reported on in full by the Consulate General in Batavia, I do not believe it is necessary to discuss them in detail. The Colonial Office here is very confident that the present plan will work to the benefit of all concerned and that abuses of all kinds will be avoided which might have made the restriction an unbearable burden to the consuming nations.
In my despatch No. 19, of April 30, 1934,49 I reported to the Department the Netherland Government’s assurances, among other things, that as a member of the International Restriction Committee it would oppose all efforts to manipulate the Restriction for the purpose of bringing about excessive rubber prices. I am pleased to be able to report that there is no change in Dutch policy, which was convincingly [Page 663] reaffirmed during Premier Colijn’s recent visit to London. He informed Mr. Emmet and me, in confidence, that the British members of the Committee had wished to raise the percentage of restriction to thirty percent but that the Dutch had insisted on twenty and that after what amounted to a threat of withdrawal he obtained a compromise of about twenty-five per cent, effective until January 1, 1935. Dr. Colijn apparently feels that the British will continue to make every effort to raise the price of rubber, even to a shilling a pound, their actual objective, however, being nine pence. He feels confident that he will be able to prevent them from doing so. The attitude of the Dutch Government remains firm and is based, of course, chiefly on its own special desires in respect to the East Indies and the control of native rubber. I do not believe that he considers a shilling a pound too high a price for the consuming-manufacturing interests to bear nor do I think he is impressed with the dire possibilities predicted by various American interests concerning “reclaimed” rubber or synthetic rubber.
We may, I think, place confidence in the Netherland members of the International Committee and count on a firm attitude on the part of the Netherland Government provided the methods adopted for restriction control and price control prove effective. So far there seems to be good reason to believe that they will work, in so far as the Dutch East Indies are concerned. Complaints from native growers that they have been discriminated against, and a study of the question reveals that they have been, will not be listened to by the Netherland Government, which wishes to discourage the growing of non-plantation rubber.
Respectfully yours,
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