892.6176/27
The Department of State to the British Embassy
Memorandum
Rubber Reserve Company has considered the proposal for joint purchases of Thai rubber contained in the British Embassy’s Memorandum of September 5, 1941.
Rubber Reserve Company is ready to proceed with this program and approves the suggestion that the East Asia Company conduct the purchases on behalf of the British Government and the Rubber Reserve Company. It is assumed that the detailed terms of shipment and payment for the rubber will be worked out in collaboration with the Rubber Reserve Company.
It is suggested that any publicity to be given to the fact that such purchases are for joint Anglo-American account should be released or conducted through unofficial channels, perhaps by oral statements of the East Asia Company.
The Department is in accord with the suggestion that oil and other essential requirements should be furnished to Thailand as long as that country continues to resist Japanese aggression and that it is not desirable to make the maintenance of supplies actually contingent upon the amount of rubber delivered to approved destinations. The amounts and nature of these supplies will, it is assumed, be considered from time to time as occasions arise.
It is suggested that the authority to the East Asia Company be limited to a maximum price of thirty cents per pound of rubber delivered in Thailand. It is also thought desirable that the joint purchasing program be subject to termination at any time by the British Government or the Rubber Reserve Company.
If the program as set forth in the British Embassy’s Memorandum of September 5 and this Memorandum is satisfactory to the British Government, the Department will consult with the British Embassy as to the method of proposing the program to the Thai Government.