800.6176/8–2144: Telegram

The Secretary of State to the Ambassador in Brazil (Caffery)

2566. Following memorandum handed to Brazilian Embassy:

“Exploratory rubber talks were held in London, August 1 to August 9 inclusive, by representatives of the Governments of The Netherlands, United Kingdom and the United States. The first day and a half of these discussions were spent in reviewing rubber statistics and estimating the probable post-war demand and supply situation for rubber, (synthetic, natural and reclaimed). Attention was directed to the problems likely to arise in each of the following three periods:

The inter-war period following the collapse of Germany up to the surrender of Japan.
The rehabilitation period of the Far Eastern plantation and native rubber producing areas.
The long-run post-rehabilitation period.

A compilation of the necessary statistical and factual studies which should be made in order to keep the world rubber situation under review was next undertaken. Following this, the alternative methods for carrying out such studies and for continuing discussions of postwar rubber problems were considered. It appeared to be the concensus of those present that some studies should be made jointly by the British and Dutch utilizing the facilities available to those two Governments and that certain other studies should be made in the United States utilizing facilities presently available in this country for rubber research.

In order to collaborate and discuss world rubber problems on a continuing basis it appeared to those participating in the discussions that it was desirable to establish an informal international Rubber Study Group to supervise the making of studies and to discuss the results of those and other studies. The proposed Group would have the following terms of reference and procedure:

The proposed Study Group should consist of representatives of the three Governments and should have as its objectives: [Page 976]
To meet from time to time to discuss common problems arising from the production, manufacture and use of rubber (crude, synthetic, and reclaimed);
To initiate studies which bear on these common problems;
To examine these and other relevant studies; and
To consider and suggest possible solutions.
The procedure of the Rubber Study Group would be by discussion and by the keeping of approved records of these discussions. The agreed minutes would be transmitted to the respective Governments by their representatives, with such comments as they wish to make. The group’s procedure would not include voting with regard to the subject matter of the discussions, nor the transmission from the group as a whole of formal recommendations to the Governments.
Subject to the foregoing provision the group should settle its own procedure.
Arrangements would be made for other interested governments to be kept informed of the studies made and of the results of the discussions so far as practicable.
The Study Group would continue to function during such period as, in the opinion of each of the three Governments, it continued to serve the purpose above set out.

It should be noted that the proposed Rubber Study Group would have no restrictive powers or controls of any type. A record of the discussions would be kept, however, and transmitted to the participating Governments through their chosen representatives. The group as such would make no formal recommendations to the participating Governments. Should this proposal receive the approval of the participating Governments steps will be taken immediately to constitute the Rubber Study Group.

As indicated previously arrangements will be made to keep other interested governments informed of the studies made and of the results of the discussions. In accordance with this announced procedure, the United States Government will consult with the Government of the United States of Brazil before and after meetings of the Rubber Study Group. Also, since there are some aspects of the prospective rubber situation which are of particular concern to these two Governments, it may become desirable at a later date for technical experts of the two Governments to engage in a discussion of rubber problems of mutual concern.

It is also possible that at a later time multilateral talks on a wider basis may be fruitful, in which event all governments interested in the production or consumption of rubber should be invited to participate.”

For Embassy’s information it appears likely that Department will approve United States participation in the Rubber Study Group.