822.24/341: Telegram

The Ambassador in Ecuador (Long) to the Secretary of State

708. In a long conference with the Minister of Finance at which Wiley and Lowry94 were present he pointed out that under the contract Rubber Reserve agreed to supply the essential requirements of Ecuador and that up to the present time no tires have been received nor has any indication been given as to when these may be expected. This despite shipments of approximately 590 tons of crude rubber to the United States. A shipment 810 tires are now due to arrive from Argentina and criticism of the contract is mounting. The Minister feels that immediate shipments must be made by us in order to counteract this and has suggested the following as a means of expediting deliveries. See the Embassy’s telegram No. 660, August 14, 7 p.m., and Department’s telegram 607, August 19, 11 p.m.95

The Minister desires to submit a single Certificate of Necessity to Rubber Reserve covering the balance of tires provided in the quota the third quarter. The Certificate of Necessity would specify in detail the number of each passenger car and truck tires according to size which are required to complete this quota and shipment would be made by Rubber Reserve direct to the Office of Priorities and Distribution of Importations regardless of the particular brand, but only recognized first quality tires would be supplied. The Office of Priorities would establish the necessary credit and would assume responsibility for the equitable distribution of shipment among the various dealers. It is requested that an immediate answer be given as to whether the balance of the third quarter quota can be handled in this way. If not, please suggest means by which immediate shipments can go forward for the situation is becoming critical. In any event please indicate approximately how soon some shipments may be expected.

In addition to the Minister’s comments reference is made to paragraph 4 of the Embassy’s telegram No. 694, August 26, 6 p.m.96 It is reported by the Ecuadoran representative of the Michelin Company in Argentina who is receiving the 810 tires that his principals announce they can supply approximately 3,500 additional tires for Ecuador. It [Page 411] is stated that these arrangements are possible in conformity with a reported Argentine decree effective May 1 authorizing the exportation of tires and other products to countries shipping crude rubber to Argentina. It is said that Argentine firms can supply tires up to 25% of the weight of crude rubber received and other products up to 5%. Presumably above shipments would represent 25% of the crude rubber shipped from Ecuador to Argentina between January 1 and July 8. Argentina seems to be doing whatever possible to discredit our contract and it is essential that Rubber Reserve deliver some tires in Ecuador without any delay.

  1. Walker W. Lowry, representative of the Rubber Reserve Company.
  2. Neither printed. In his telegram No. 660, the Ambassador asked for information concerning shipments of tires and food needed in Ecuador; in Department’s telegram No. 607, the Embassy was reminded that few Certificates of Necessity for these commodities had been presented (822.24/319, 322a).
  3. Not printed; paragraph 4 of this telegram reported that Argentina was supplying Ecuador with 900 tires and might eventually acquire a part of Ecuador’s rubber unless the United States acted immediately (811.20 Defense (M)/8619).