811.20 Defense (M)/9080

Rubber Agreement Between Panama and the Rubber Reserve Company, Signed at Panama, September 11, 19422

The undersigned, Octavio Fábrega, Minister for Foreign Affairs of the Republic of Panama, acting on behalf of his own Government, and J. L. Apodaca, acting on behalf of the Rubber Reserve Company, an Agency of the United States Government, being duly and legally authorized, have concluded the following Agreement:

Rubber Reserve is obligated to supply to the Republic of Panamá an annual quantity of manufactured rubber products containing an equivalent of not more than two hundred forty (240) tons of rubber, in accordance with the specifications that the authorized officials of the Republic of Panamá give to Rubber Reserve. The Republic of Panamá agrees to take effective measures for the purpose of conserving the rubber products and directing them toward the most essential uses, including measures to avoid the hoarding of rubber and rubber products.
The Republic of Panamá obligates itself to prohibit exports of rubber and rubber products from Panamá to any country or territory other than the continental United States and to make every effort to see that all rubber products in the territory of the Republic of Panamá which are not required by the Republic of Panamá for domestic use or consumption shall be made available for export to the United States. The amount of rubber (including the rubber contained in the rubber products) required by the Republic of Panamá for internal use shall be fixed at not more than two hundred forty (240) tons per year; but it is understood and agreed that this amount may be increased by mutual consent of the parties up to the point in which it is shown that a larger amount is required to meet the justifiable needs of Panamá.
The Republic of Panamá consents to the establishment by Rubber Reserve of the necessary organization or agency in the Republic of [Page 643] Panamá, which shall be the only organization or agency empowered to purchase crude rubber for export, to assist in rubber production and to aid in the development of the rubber resources of the Republic of Panamá. It is understood that such organization or agency as may be established shall have all powers necessary and appropriate to the performance of these functions. It is further understood that the Republic of Panamá will collaborate with the program in every possible way to the end that the largest possible quantity of rubber, consistent with the conservation of the resources of Panamá, may be produced.
Rubber Reserve, through its agency, and the Republic of Panamá will jointly take such measures as may be deemed necessary to assure that gatherers of rubber receive a fair proportion of the final price paid at the ports of shipment. Rubber Reserve agrees to collaborate fully with the Republic of Panamá in accomplishing such purposes, and to consult, through the proper channels, with the Ministry of Commerce and Agriculture of the Republic of Panamá with respect to the inclusion in contracts of provisions for accomplishing such purposes as well as other methods of improving economic conditions for the growers of rubber.
The term of this agreement shall be for a period beginning with the date hereof and ending December 31, 1946, unless sooner terminated by the mutual consent of the parties hereto.
This agreement requires the approval of the Executive Power of the Government of the Republic of Panamá.3

Signed in Panamá in duplicate in both English and Spanish this 11th day of September, 1942.

On behalf of the Government of the Republic of Panamá,

Octavio Fábrega

Minister for Foreign Affairs

On behalf of the Rubber Reserve Company, Agency of the Government of the United States of America,

J. L. Apodaca
  1. Copy transmitted to the Department by the Ambassador in Panama in his despatch No. 2962, September 11; received September 17.
  2. The agreement was signed by the Panamanian President on September 12.