Memorandum of Conversation, by the Chief of the Commodities Division (Haley)

Participants: Mr. Valentim Bouças, Commission of Control of the Washington Agreements and Economic and Financial Council
Mr. Douglas Allen, Rubber Development Corporation
Mr. Haley, CD

Mr. Valentim Bouças called with Mr. Douglas Allen, the appointment having been made at the latter’s request. Mr. Bouças expressed the hope that nothing would be done at the forthcoming rubber discussions with the British and Dutch that would in any way affect adversely the Brazilian interests with regard to natural rubber. He pointed out the desirability of Brazilian rubber continuing to have a place in the United States market in the post-war period, both for security reasons and because of the encouragement which had been given to Brazil to develop increased natural rubber production during the war. In the event that any decrease in the market for Brazilian rubber were to occur he hoped that a gradual process of reduction might be worked out for the Brazilian industry so that too much hardship would not be incurred.

I assured Mr. Bouças that it was not expected that any decisions would be made at the forthcoming discussions with the British and the Dutch. It was expected that consideration would be given to a proposal for establishment of an international rubber advisory committee [Page 974] (without restrictive powers) and to a discussion of the probable nature of post-war rubber problems. I assured him that if such an advisory committee were to be established it certainly would be my personal wish that his Government would be represented on the committee. I also assured him that before the United States made any decisions with regard to rubber policy that might affect the natural rubber industry of Brazil, we should most certainly consult his Government.

Mr. Bouças was very appreciative.