800.6176/100: Telegram

The Secretary of State to the Ambassador in the United Kingdom ( Kennedy )

901. Your 1577, September 11, 1 p.m.33 Viles is issuing his statement today. He feels, however, that speculation may still get out of hand unless there is a prompt announcement by the International Committee, or at least by the British Government, that quotas will be increased for the fourth quarter, leaving for a later announcement if necessary the extent of such increase. In addition to the considerations which Viles has already set forth in a communication to Campbell, he is now influenced in reaching this opinion by the fact that Singapore greeted the announcement of 70 percent for the fourth quarter (including 10 percent for the Agreement rubber) as a bullish factor, and by the fact that the Dutch are offering rubber only for long-term contracts and at prices above the market.

You may also wish to transmit to the British Government the information that American manufacturers have learned today that Singapore refuses to make offers on no. 1–X ribbed smoked sheets at any price on the score that all such rubber is earmarked for the British Government. It is assumed that this position is unjustified and that, so far as the Agreement rubber is concerned, the British Government will buy only rubber available after October 1 under the new 10 percent release.

If the Netherland Government is in any way delaying agreement on larger releases for the fourth quarter, please inform The Hague and the Department promptly.

  1. Not printed; it stated that the Colonial Office entirely approved the statement quoted in Department’s telegram No. 884, September 9, supra.