811.24 Raw Materials/1383: Telegram
The Acting Secretary of State to the Chargé in the United Kingdom (Johnson)
3487. Your 3709, November 12. The Department has received the following memorandum from H. J. Klossner, President of the Rubber Reserve Company:
“Mr. A. L. Viles in a telephone conversation suggested that the State Department request the Embassy to arrange a meeting in London in cooperation with the Colonial Office for the purpose of explaining our [Page 279] attitude regarding the need for a greatly increased flow of rubber, or in other words, a higher quota for the first quarters of 1941 and such other steps as might be taken immediately regarding the fourth quarter of this year, particularly to invoke Clause 5 (1) of the Treaty specifying the regulatory provision of the I. R. R. C. and whatever steps may be necessary to implement this clause at once. In the interest of complete coordination and understanding we wish to emphasize that the Embassy again in cooperation with the Colonial Office might suggest to the International Rubber Regulation Committee through such channels as are normally used that it is most essential that Sir John Hay be invited to attend this meeting in his capacity as the Plenipotentiary Representative of the I. R. R. C. in negotiating the agreements with the Rubber Reserve Company and also because of his clear understanding as of today regarding the needs of the Rubber Reserve Company, the manufacturing industry in the U. S. A. and the joint aim of the company and the industry in building emergency stocks in this country. Sir John Hay booked passage on the Clipper due to leave Thursday last week. Flight postponed to Saturday to Monday, Tuesday, Wednesday, Thursday and probably Saturday of this week, Campbell advises meeting will await Hay’s return. However Hay is safeguarding against continued delay New York, Bermuda, Azores or Lisbon wiring Campbell tonight if delay continues Committee should act immediately on recommendations Hay and Viles. In such circumstances conference should be held prior to action by the Committee and should include Chairman or such other representatives of International Committee as may be designated.”
For your further information, Mr. Viles sent the following cable on November 8 to Campbell of the I. R. R. C.:
“With respect next meeting Committee situation here becoming more serious and we again emphasize our opinion in telegram 6th November that meeting not be held until Hays return. Only small quantities crude rubber available for purchase at top price range June agreement. If buying Rubber Reserve Company and industry continues normal rate quite obvious prices would so far exceed agreed range execution of agreement would be seriously hampered and perhaps nullified. Mister Jesse Jones has presented the views of our Government to Sir John Hay and as member Advisory Panel presenting opinion manufacturing industry we earnestly request favorable consideration invoking clause 5 (1) also postponing indefinitely any deduction account excess shipments we believe it is most essential that supplies come forward in quantities that will permit of industry maintaining stocks within terms of agreement between our Government and Committee therefore we ask favorable consideration of 100% quota first quarter 1941 as our consumption and purchases for first quarter and year sufficient preclude even slight danger of severe reduction in demand.”
The Department has noted with satisfaction that it is the wish of the Colonial Office to give this Government all possible help in obtaining the rubber which it requires and it agrees with the proviso “that this be done in an orderly fashion”. It should be clear from the [Page 280] foregoing that there is no wish on the part of the Department or the Rubber Reserve Company to disturb the orderly operation of the industry. The primary concern of the Department in this matter, however, remains that of securing the rubber believed vital for our defense purposes as rapidly as possible, and the evidence suggests that this is not being done. Therefore, please do your utmost to secure the necessary action.