811.24 Raw Materials/330: Telegram

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

1776. An informal discussion took place with Campbell today regarding yesterday’s Rubber Committee meeting and the considerations set forth in the Department’s 1036, September 21. The Committee decided to authorize a 5 percent release for the fourth quarter provided it received satisfactory assurances as to the interpretation of “a major war emergency” in article 4 of the Agreement. That is to say, that they agreed only to authorize the release if the article was not now operative for the United States. In reply to an inquiry from the Ministry of Supply I gave them textually the assurance as contained in the second paragraph of the Department’s 811, September 6.39 The Ministry of Supply fully understands that we now have the right to use the stocks but do not intend to do so and it also understands that it will have the responsibility of dealing with the Rubber Committee. However, should you feel free to clarify our position further and make it more precise it would be of assistance to the Ministry of Supply. The Rubber Committee obviously do not want the United States to have what would in effect be a buffer stock which could be employed with commercial considerations in mind. Campbell stated quite frankly that the Committee got out of his control. He maintains that regardless of what the Dutch may have said at The Hague that without prior consultation their representative at the Committee meeting did not favor any increase but was prepared to go to 5 percent if it was deemed necessary. Campbell stated that he and the representative from India were over-ruled on the 10 percent and that the other members were impressed by the fact that 116,000 tons of rubber per year would be put onto the market by reason of the absence of German, Polish, Czech and Austrian demand. It is common gossip in rubber circles here that American manufacturers have been buying “hand over fist” in London as well as in Middle Eastern markets. If it were possible to supply any statistical information [Page 880] in contradiction of this impression it would greatly reinforce the statement contained in the third from the last sentence of your 1036, September 21.41

  1. Printed in vol. ii , section entitled “Negotiations Between the United States and the United Kingdom …” under United Kingdom.
  2. Supra; see also telegram No. 1089, September 27, to the Ambassador in the United Kingdom, printed in vol. ii , section entitled “Negotiations Between the United States and the United Kingdom …” under United Kingdom.