811.20 Defense (M)/2044: Telegram

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

1684. The following from Rubber Reserve:

“In order that our Government can provide adequate freight and assure a reasonable constant flow of rubber to this country for increasing defense and commercial requirements, Rubber Reserve Company has been giving earnest consideration to the adoption of a plan for purchasing the entire needs of this country for distribution to the industry and the continued accumulation of stocks as per the agreements with the International Rubber Regulation Committee.

Recent announcement by the British Government of adoption of a single buying agency under government control has stimulated this Government’s interest in the early adoption of a central buying plan which provides for the use of all existing market facilities in the purchase of our requirements at 18½ American cents F. O. B. Asiatic ports, or ex-godown, when and where practicable, less current cost differential between F. O. B. and ex-godown, and also if desirable through other forms of purchase.

The full cooperation of the International Rubber Regulation Committee and the signatory Governments is required to assure free flow of an adequate supply of rubber to this country for our needs through Rubber Reserve Company as the central buying agency at the top of the price range of the present agreements for a mutually satisfactory period of time. This arrangement contemplates such action on the part of the British and Dutch Colonial Governments, and if possible the other signatory governments, as may be necessary to restrict the sale of rubber for export to the United States to Rubber Reserve Company at prices outlined above. It is suggested this arrangement provide for termination by either party giving 6 months notice of cancellation. It is not intended this arrangement, when adopted, will abrogate existing contracts. Industry approves this program.

Accordingly, the Embassy is asked to acquaint the International Rubber Regulation Committee, the British Colonial Office and the [Page 503]appropriate officials of the Dutch Government with the above and obtain their concurrence as soon as possible. If it is deemed desirable the Embassy will, of course, feel free to arrange for a conference between these interested parties.

An early reply will be appreciated.”

Hull