856D.6176/390: Telegram (part air)

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

10. Discussed rubber situation this morning with Premier Colijn. He repeated assurances given by Van Gelderen (see despatch No. 653, February 3) and said price of rubber was too high and that he was disappointed. He said that an effort was being made to bring the price of rubber down; the British Government was entirely in accord with this idea although many British growers because of labor difficulties favored present prices or even higher. He said that the situation had only been acute since December 1 and was due in great part to purchases for military requirements by various nations attempting to create a national supply. He also assured me that if the present situation was not altered by the recent action of the Committee he would favor an even higher percentage of unrestricted rubber to be agreed upon at the next meeting. He thought effects of recent increases in quotas had not yet been felt and also that the scheme of regulation would be elastic and responsive enough to meet the requirements.

I repeated to him the arguments already made at the Ministry of Foreign Affairs contained in the Department’s various telegraphic instructions.