892.6176/19a: Telegram

The Secretary of State to the Minister in Thailand (Peck)

118. The arrangements for joint buying of Thai rubber by the British and the Rubber Reserve Company have now been agreed upon. The British Embassy here has informed the Department that a telegram will be sent to the British Minister in Bangkok requesting him to communicate with you on this subject. It is suggested that when he does so, you inform the Thai Government that the British Government proposes to instruct the East Asiatic Company to start buying rubber on its behalf and that the Rubber Reserve Company will purchase one-half of the rubber acquired by the British Government. East Asiatic Company will act as agent only of the British Government. The Penang branch of the East Asiatic Company will be appointed agent; and the Bangkok branch of the same Company will be appointed subagent. It has been determined that the buying will start unobtrusively, that publicity will be given out only if at all by the East Asiatic Company, and that your communication to the Thai Government should be regarded as strictly confidential. In any case the price limit which for your information will be 30 cents per pound delivered in Thailand, must not be communicated to the Thai Government. It has been agreed that the buying arrangement may be terminated by either the British Government or the Rubber Reserve Company at any time.

Chargeable to Rubber Reserve Company in accordance with Section V–45, Foreign Service Regulations.