811.24 Raw Materials/316a: Telegram
The Secretary of State to the Minister in the Netherlands (Gordon)
83. A statement is being released to the press by the Rubber Manufacturers’ Association here passing on to buyers reassurances made by the British Government and by Campbell and Pawson to the effect that entirely adequate supplies of rubber will be released throughout the war period. The British Government is being informed, however, that it will be difficult to discourage a speculative market here unless there is a prompt announcement that additional releases will be made for the fourth quarter, leaving for a later release, if necessary, the [Page 873] extent of such additional releases. The rubber manufacturers here had recommended a 5-percent increase but, in view of present consumption and stock figures, will probably change this to 10 percent within the next day or two. The Department has taken the position that the producing countries should release all of the rubber that can be produced during the next few months so as to make possible some building up of stocks.
For your own information, the Department is informed that the Dutch are offering rubber in the New York market only for long-term contracts and at prices considerably above the market. In view of this fact and of the hesitancy of the Netherlands Government in approving the additional 10-percent release for agreement rubber in the fourth quarter, it is possible that the British are having or will have some difficulty in securing the assent of the Netherlands to a further increase of quotas. Please make inquiries and give London and the Department any available information.