811.24 Raw Materials/1517a: Telegram

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

552. The question of the continuance for the second quarter of the 100 percent quota for rubber is again to the forefront and this Government deems it of high importance that the quota be continued. In that connection, Mr. Viles, as a member of the Advisory Panel, cabled the International Rubber Regulation Committee in the name of the American manufacturing industry as follows:

“Referring recent telephone advices regarding shipping and continuance 100 percent quota second quarter. Our Government completed arrangements to give full measure relief to shipping situation. Consumption by manufacturing industry on highest level known our estimates consumption year 1941, 636,000. Also shipping lag now requires that industry and Rubber Reserve Company need to purchase and transport crude rubber in greater quantities than heretofore anticipated over balance this year. Therefore cannot emphasize too greatly necessity for continuing 100 percent quota in second quarter. We understand Mr. Jones43 presenting similar views to Committee through Sir John Hay.44 We believe any other course of action will create immediately most dangerous situation for the industry and objectives of Rubber Reserve Company set forth in agreements and additional tonnage referred to in Mr. Jones letter to Hay 5th November, 1940.45 Regards.”

Mr. Jones yesterday cabled to Sir John Hay in the same sense. The Embassy will have seen text in Department’s No. 537 of February 19.46

The Rubber Reserve Company believes, and the Department agrees, that in order to assure the desired action by the Committee it will be useful to have the same type of preliminary meeting as was held prior to the November meeting. It is suggested therefore that in whatever way seems most suitable you suggest that the Colonial Office ask the International Rubber Regulation Committee through ordinary channels to arrange a preliminary conference prior to the meeting on February 25. It is further suggested that Chairman Campbell, Sir John [Page 493]Hay, Hart of the Dutch Colonial Office in London, should participate in this conference along with such other members as may be feasible.

We will appreciate renewed exercise of the good offices of the Colonial Office and the cooperation of the International Rubber Regulation Committee.

Hull
  1. Jesse Jones, Secretary of Commerce and Federal Loan Administrator.
  2. Member of the Malayan delegation on the International Rubber Regulation Committee.
  3. See section (2), telegram No. 3709, November 12, 1940, from the Chargé in the United Kingdom, Foreign Relations, 1940, vol. ii, p. 277.
  4. Not printed.