811.24 Raw Materials/160: Telegram
The Ambassador in the United Kingdom ( Kennedy ) to the Secretary of State
[Received June 5—8:40 a.m.]
775. Your 404, June 3, 3 p.m. I understand the Board of Trade is going to come through with more or less concrete proposals tomorrow.
The Government’s position is that it has no tin and rubber. Any supplies will have to be bought on the open market. They are unwilling [Page 251] to undertake such purchases prior to the conclusion and if necessary the ratification of any agreement. I feel reasonably sure that they won’t want to deal on the basis of a price for rubber and tin fixed on a past period; they will no doubt insist on being reimbursed in terms of cotton for their actual out of hand costs for rubber or tin.
Therefore, what formula do you suggest which might make it “possible to leave the question of price open for final adjustment after ratification” and which would prove acceptable to Congress. I assume that any general and reasonable formula which would be acceptable to Congress would probably be acceptable to the British Government, particularly in view of the powers which the British Government will have under the new Ministry of Supply legislation.
I hope you can give me an answer to this before tomorrow so that I can talk turkey with them.