892.6176/23: Telegram
The Secretary of State to the Minister in Thailand (Peck)
140. Your 483, October 20, 5 p.m. and 494, October 28, 5 p.m.24 The Department confirms that the arrangements between Rubber Reserve Company and the British Government provide that payments by the East Asiatic Company shall be made in sterling, but that half of the rubber so purchased will be resold by the British Government to Rubber Reserve for dollars, and that the dollars so acquired by the [Page 335] British Government will be resold to the Thai Government for sterling at the official rate of exchange. The Department and the British Embassy here feel that the procedure by which the dollars are to be made available to the Thai Government should be settled by you in consultation with the Thai Government and the British Minister. Rubber Reserve is willing to pay the dollars either to the British Government, or upon order of the British Government, directly to the Thai Government. The Department does not desire the creation of a special account if by that term it is intended that withdrawal from the account will be in any way restricted. The Department does approve, however, of an allocation of the dollars between the Thai Government and the local banks such as that suggested in your 483. Rubber Reserve Company will make such dollars available as soon as the rubber has been shipped from Thailand, and as soon as it is in receipt of wired advice from you stating that you have received appropriate bill of lading endorsed on board ocean carrying vessel consigned to Rubber Reserve Company, U. S. A. port; it being understood that title to the rubber so purchased by Rubber Reserve Company shall not pass, nor shall such rubber be at risk of Rubber Reserve, until issuance of said bill of lading endorsed on board ocean carrying vessel. You are requested to forward said bill of lading to Department by first air mail. Please consult your British colleague as to their details of payment.
Chargeable to Rubber Reserve in accordance with Section V–45, Foreign Service Regulations.
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