811.24 Raw Materials/1630: Telegram

The Secretary of State to the Ambassador in the United Kingdom ( Winant )

1372. The following from Rubber Reserve Company:

“Rubber Reserve Company has, up to the present time, purchased approximately 150,000 long tons of rubber, thereby completing purchases provided for by first agreement dated June 29, 1940. Under terms of second agreement dated August 15, 1940, it was contemplated that 70,000 tons of rubber would be available to Rubber Reserve Company during the first quarter of 1941 and 50,000 tons during the second quarter of 1941. After giving full consideration to the increase in the inventory of the rubber manufacturing industry in this country, as reflected by figures compiled by the Rubber Manufacturers Association as at March 31, 1941, purchases by Rubber Reserve Company to date are approximately 22,500 tons short of the scheduled quota. Rubber Reserve Company is now and since April first has been offering 18½ American cents f. o. b., April, May, June shipment, buyer furnishing freight, which is the top agreement price, but despite this fact, has been unable to secure any substantial amount of rubber. Please notify the International Rubber Regulation Committee of the foregoing, and ascertain what steps it proposes to take to carry out the terms of the second agreement of August 15, 1940 in order that rubber may be made available. Your early advices will be appreciated.”