811.20 Defense (M)/74a: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Kennedy)
1528. There follow for the Embassy’s confidential information and guidance texts of the agreements signed by the Reconstruction Finance Corporation and representatives of the rubber and tin industries:
[For text of the rubber contract signed June 29, 1940, see The History of Rubber Regulation, 1934–1943, edited by Sir Andrew McFadyean for the International Rubber Regulation Committee (London, George Allen & Unwin, Ltd., 1944), page 210. For text of the tin contract, signed June 29, 1940, see post, page 297.]
The new American corporations to be constituted will have suitable purchasing organization. It is part of the understanding that the Tin Committee would immediately lift the production quota to 130 percent (which is virtually unrestricted production) and would undertake to take all steps vis-à-vis the interested governments and local authorities to assure that production would attain the largest possible measure.
A similar understanding exists as regards rubber but no decision has been reached as to the exact quota to be established at the meeting on Friday. This matter is receiving immediate attention and Embassy will be further advised.
It is important that both the British and Dutch Governments clearly understand and will facilitate these arrangements which are believed to be of a generous character. We have met in full and firm form the request of the Tin and Rubber Committees that they be assured of a market at a fair price for all increased production of tin and rubber. It is now up to them to assure increase in production. In the event that the Colonial Office still is confused make it clear to them that these agreements were negotiated as a result of continuous discussion in the case of rubber between Mr. Jones, Sir John Hay, Mr. Viles and the leading American rubber manufacturers; in the case of tin, Mr. Jones, Messrs. Lowinger and Van den Broek, and leading steel manufacturers. They represent the complete agreement of all parties to the discussion.