The Secretary of State to the Ambassador in the United Kingdom ( Bingham )
Sir: Reference is made to the Embassy’s despatch No. 2932 of March 15, 1937, transmitting copies of the note of the Foreign Office dated March 11, 1937,36 in reply to the Embassy’s note of February 16 with regard to the rubber situation.
There is enclosed herewith the text of a note in reply to the Foreign Office’s note which you are requested to transmit as a formal first person note.
In addition, you are requested to continue upon all appropriate occasions to keep before the appropriate officials of the British Government the serious interest of this Government in the operation of the international rubber restriction scheme.
In connection with the references in the note to local conditions as a limiting factor in production, you are requested to point out orally that it is reported that Sarawak has declared a tapping holiday from April 11 to May 10, 1937. Thus while it is contended in the Foreign Office’s note that it is no use increasing permissible quotas beyond a reasonable appraisal of actual production possibilities, there appears to be little or no disposition to take advantage of the possibilities in those areas which could produce more; but in fact action is taken for a complete cessation of production in one area in the face of the existing world stock situation.
The Department is also informed by the Trade Commissioner at Singapore that the consensus of opinion at the present time is that Malaya can produce the rubber quota for the remainder of the year notwithstanding labor conditions, providing the Government insists that producers meet their assessments or have them reduced. Although this Government would prefer not to become involved in actual details of administration or of revision of the rubber scheme, you may make such discreet use of this information as seems desirable [Page 903] to you in connection with numbered paragraph 14 suggesting closer coordination between the decisions of the local governments and those of the Committee.
You will note that in numbered paragraph 16 of the note enclosed herewith, it is urged that the Committee increase the rates of release for the last half of 1937. For your confidential information the American representatives on the consumers’ panel will probably present a vigorous request at the meeting of the Committee on May 25 for a revision of the quota for the last six months of 1937 from 90 percent to not less than 95 percent. This Government concurs in this request and if inquiries are addressed to you in connection with the suggestion in paragraph 16, you may indicate that such a rate of release is the minimum which would appear adequate to this Government.
Very truly yours,
- See footnote 25, p. 894.↩
- Transmitted by the Ambassador in the United Kingdom to the British Secretary of State for Foreign Affairs as the Embassy’s note No. 2520, May 1, 1937.↩
- For correspondence concerning this Conference, see Foreign Relations, 1933, vol. i, pp. 452 ff.↩
- Foreign Relations, 1934, vol. i, p. 653.↩
- For text, see telegram No. 127, March 23, 1934, from the Ambassador in Great Britain, Foreign Relations, 1934, vol. i, p. 637.↩