The Chargé in Nicaragua (Cochran) to the Secretary of State
[Received April 24—3:50 a.m.]
174. Reference is made to the Department’s telegram no. 82 of February 16, 9 p.m.1 Mr. Seeley2 is now in Managua for a few days and plans to return in about 3 weeks. He agrees with the Legation that before progress can be made in improving methods of processing wild rubber, arrangements must be made for the purchase of the product. There has been no organized system for selling the rubber which is already warehoused here to the United States although some sales have been made to Mexico and Guatemala. Will the Rubber Reserve Company make an immediate offer for the rubber already stored and to buy future Nicaraguan production at a fixed price?
Seeley joins the Legation in recommending that an agreement be negotiated with the Nicaraguan Government providing for the export control of rubber and the sale of all Nicaraguan production to the United States at a price to be agreed upon, all such rubber to be handled by the trading subsidiary of the National Bank, as recommended in the Legation’s despatch no. 521 of April 13.1 Seeley could then return to Nicaragua for 2 months or for whatever period is necessary in order to visit the various rubber producing regions and to stimulate the production of wild rubber. There is no use embarking on the latter program until there is some indication of a market and an acceptable price for the rubber when produced; since it appears that Nicaragua can produce several times as much rubber as it normally consumes, such efforts would seem to be fully warranted.
The Legation urgently recommends that someone be sent to Nicaragua immediately to determine the amount of rubber now available [Page 567] in warehouses for immediate shipment, its quality, and to quote a price and arrange a sale operating on behalf of the Rubber Reserve Company. If not can Seeley be authorized to do so immediately upon his return 3 weeks hence?