800.6176/14: Telegram
The Secretary of State to the Minister in the Netherlands (Emmet)3
26. It is our understanding that the current rate of release of crude rubber, as set by the International Rubber Regulation Committee, is [Page 505] not sufficient to meet the current consumption requirements of the world. As a result, world stocks have been declining even more rapidly than anticipated and have reached a point where they create the possibility and danger of inadequate supplies and unreasonably high prices. It is our feeling that the avowed purposes of the international regulation scheme cannot be carried out and the legitimate interests of consumers as well as of producers cannot be safeguarded unless the Committee provides for an increase in the release of rubber in the near future. With the annual rate of consumption in the United States estimated as exceeding 530,000 tons annually, stocks in the United States had already dwindled by the end of July to less than 230,000 tons, less than a 6-months’ supply, which is considered by American manufacturers as the minimum safety level.
The Rubber Manufacturers Association, of the United States, is represented on the Consumers Panel of the International Committee by Colonel A. F. Townsend, Chairman of the Board of the Association and Chairman of Raybestos-Manhattan Company. Colonel Townsend is now on his way to England to attend the meeting of the International Committee about September 27. Associated with Colonel Townsend at this meeting will be Mr. William de Krafft, Chairman of the Finance Committee and Vice President of the United States Rubber Company. It is understood that these gentlemen wish to confer with members of the International Committee in London and in The Hague, and perhaps with officials of the two Governments, in advance of the Committee’s meeting. They probably will call at the Legation before arranging these conferences, and it will be appreciated if you will give them every appropriate assistance.
I wish you to prepare the way for this meeting by discussing this entire matter with appropriate officials of the Government. You should check upon our understanding of the facts and if the statement of the situation as set forth above appears to be substantially correct you should stress the concern of this Government and of American rubber consuming interests and should urge that appropriate action be taken by the International Committee. It appears to the Department that prices may be already above the level which could justifiably be considered fair and reasonable and that the statistical position of supplies is now such that rubber prices may very well rise considerably higher if an announcement is not forthcoming from the International Committee in the near future that additional supplies will be released.
- Substantially the same telegram on the same date to the Ambassador in the United Kingdom as Department’s No. 339.↩