800.6176/18: Telegram
The Acting Secretary of State to the Minister in the Netherlands (Emmet)
27. Your 36, September 22, 1 p.m. The International Committee’s rubber statistics cited by Premier Colijn correspond substantially with our understanding of the world situation. Do not confuse these with statistics of American stocks and American consumption contained in the Department’s No. 26.
The Department does not wish to enter a formal protest against the International Committee’s policies at the present time. Please see the appropriate officials of the Dutch Government again, however, and express the strong feeling of this Government that stocks have already been brought to a sufficiently low level and prices raised to a sufficiently high level to meet the expressed purposes of the international control scheme. Rubber prices during the last few months have reached the highest point since the present restriction scheme was instituted, in spite of the International Committee’s recent reduction in the percentage of restriction. It seems logical to expect further increases in prices as a result of the expected further reduction of stocks during the last months of this year if the International Committee does not give some evidence of its intention to pursue a policy of maintaining adequate supplies by a further reduction of the rate of restriction for the early part of next year if not for the last quarter of this year.
You should assure the Dutch officials again that this Government appreciates and values Premier Colijn’s continued determination to seek a reasonable administration of the restriction program. As an alternative to the release of more rubber during the last quarter of this year, as reputedly desired by the Netherlands officials and opposed by the British, it is hoped that the Dutch representatives on the International Committee will seek a compromise at the meeting on September 29 to provide for additional releases of 5 to 10 percent beginning with January 1937.