811.20 Defense (M)/628: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received November 7—1:55 p.m.]
Following from Singapore:
“November 5, 6 p.m. Malayan rubber shipments during October totaled 70,352 tons; destinations as follows: United Kingdom 10,097; United States 46,789; Europe 620; British possessions 9,576; Japan 1,414; elsewhere 1,856. In view of publication of figures by destinations I wish to repeat that such statistics are confidential and not for public dissemination. Therefore, if publication is repeated figures will no longer be available. Please caution Commerce. Present demands for rubber in excess of supplies and prices steadily increasing. Unless a larger release is forthcoming shipments during the next 2 months expected to be extremely low. Large turnover of export rights and coupons at 17¾ Straits cents per pound by sterling companies. These companies on orders from London are disposing of rights to avoid paying excess profit taxes. Rights are being purchased by medium size Asiatic estates or transferred to locally incorporated companies. Large areas of small holdings out of tapping. Although final decision has not been made government officials reluctant to release first quarter rights 1941 for shipment during fourth quarter this year as it is feared that Malaya will exceed the 5 percent allowable under control scheme. In order to overcome this situation competent authority suggests that United States Government insist that the International Committee make a retroactive release for the fourth quarter on the basis of 120 percent of basic quota or some other high figure so that article 5 of the agreement38 will be effectively operative and the scheme remain in force. To obtain the desired results this announcement should be made at the next meeting of the Committee which is reportedly scheduled for next week in order that the rubber can be produced before coming holidays and the decline expected owing to winter season. Such an announcement should be accompanied by an announcement of high rate of release for first half of 1941 in order to stimulate output necessary to meet United States reserve requirements within maximum price limits. Reiterate previous telegraphic reports that value of coupons must be reduced [omission?] if production is to move upward and that high quota release over long term necessary. Such policy would result both in fair price to producers and saving to Government and manufacturers of the United States. Patton.[”]
- Signed October 6, 1938, League of Nations Treaty Series, vol. cxcvi, p. 437.↩