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  4. Document 349

811.24 Raw Materials/1379: Telegram

The Chargé in the United Kingdom ( Johnson ) to the Secretary of State

London , November 16, 1940—2 p.m.
[Received November 16—10:50 a.m.]

3762. Department’s 3487, 15th.

1.
Rubber Committee meeting postponed to Friday, November 22, which is about last date at which the action that is necessary now can be taken.
2.
There was a meeting yesterday at the Colonial Office at which the whole ground was gone over with the Dutch who are described in spite of the present political situation as being still in a position to block anything they do not like. There was agreement at the meeting (a) to release the statutory extra 5 percent in the fourth quarter; (b) to fix the quota at 95 percent for the first quarter; (c) to contemplate a progressive reduction in the quota during 1941 from 95 to 85 to 75 to 65 percent, which steps would be necessary to reach in a gradual and orderly fashion the figure of 60 percent which is deemed to be the logical one for 1942. Even with the extra 100,000 tons to be purchased by the Rubber Reserve Company only 16,000 tons would remain to be purchased by it in the fourth quarter of 1941, assuming the above quota figures.
3.
The Dutch delegates were apparently not easy to convince as to the necessity for even such contemplated action in the first quarter, which they are described as disliking very much but which they are recommending to Batavia out of loyalty to their allies and which will probably be accepted by Batavia on that basis.
4.
The proposals stated in (1) above were the result of a compromise between the British and the Dutch. The latter hated to be rushed and the British consented to defer the meeting until Friday as their part of the compromise.
5.
The figure of 95 percent for the first quarter is stated by the Colonial Office to be the highest which in fact can be produced in [Page 282] view of the winter season as well as the highest with which the Dutch could be brought to agree.
6.
The Rubber Reserve Company’s and Viles’ proposals as communicated by the Department to the Embassy will be discussed with Clauson at 11 a.m. Monday42 and it is hoped that any comments the Department may wish to make upon this telegram reach the Embassy Monday morning.
Johnson
  1. November 18.↩