811.24 Raw Materials/1390: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received November 21—5:35 p.m.]
3811. Department’s 3527.
(1) Achilles43 urged on Hart this morning the position given in the Department’s 3487, 15th, with particular respect to a 100 percent quota for the next quarter and the application of clause 5 (1). Emphasis was placed upon the Rubber Reserve Company’s desire to accumulate stocks faster than contemplated in the June and August agreements and its difficulty in obtaining substantial quantities within the prescribed price limits. He was advised that the Department fully concurs in the desirability of an orderly purchasing program but that speed is considered essential. He was reminded of pressure for expanding production of synthetic rubber and of the unfortunate impression which might be produced were the British prepared to meet our wishes but the Dutch held out.
Hart indicated firm opposition to a 100 percent quota even though regarding it as possible of fulfillment, stating that his Government and the Dutch delegates would be forced to oppose that figure even if the British agreed to it. They would not oppose 95 percent the first quarter and 85 the second, but would prefer 90 percent for both and would themselves follow that course in administration as permitted [Page 285] by the International Rubber Agreement. They intend to follow the course of demand closely and might even be prepared for 90 percent in the third quarter although not now anticipating that there would be justification for such a quota.
Hart also objected in principle to the utilization of 1941 coupons during the present quarter. Although the issuance of coupons will begin shortly after the meeting it will not be far from the end of the year when their distribution is completed, and the Dutch do not wish to have them used before the end of the year. (This divergence from the preliminary position taken by the Dutch and reported in the Embassy’s 3762, November 16, 2 p.m., is evidently the result of Hart’s conversation with Batavia yesterday. The British Colonial Office when informed of Hart’s views today reiterated the British position that the pre-issue of 1941 coupons is the only appropriate means of accelerating export under clause 5 (1) and their intention of pressing for this course at the Committee meeting in spite of Dutch opposition. The Colonial Office also referred in this connection to Clauson’s letter of November 11, repeated in the Embassy’s 3709, November 12 showing that the Governor at Singapore was asked some time ago to send out rubber as rapidly as possible.
Hart stated that his Government had always endeavored to meet our reasonable wishes but that they were convinced from the statistical position that a 90 percent quota for the first half of 1941 would provide all the rubber we could take. It was evident that his views were partially influenced by a rather optimistic view of the Far Eastern situation.
(2) I personally talked to Clauson before Achilles went to see Hart and he said that we had his blessing in our effort to obtain Dutch consent to the quota changes proposed. I believe that most of the opposition comes from the Dutch.
(3) It is now evident that Hay will not arrive in time for tomorrow’s meeting but it seems likely that there will be an adjourned session as soon as he arrives so that the Committee may hear his views.
- Theodore C. Achilles, Third Secretary of Embassy at London.↩