Office of the Historian

811.24 Raw Materials/392: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Kennedy)

Washington, November 7, 1939—11 p.m.

1386. Your 2281, November 3 [4], and your 2301, November 7.51 It is the Department’s opinion that the Embassy should refrain from any negotiation or “conference” with the International Committee’s subcommittee although the Embassy should endeavor of course to secure and report promptly all pertinent information.

It is believed that this Government’s strongest position is to insist that dealings with the International Committee are the responsibility of the British Government. The Embassy should press the following points with the appropriate British Government officials:

1.
Both this Government and American manufacturers are in urgent need now of reserve stocks of rubber; any further delay in the accumulation of such stocks would be viewed with grave concern in the light of the present world situation. Furthermore, it will be difficult much longer to avoid press reports here that the British Government is backing out of the cotton-rubber agreement.
2.
Apparently the only difficulty in securing the desired stocks during the next few months is the unwillingness of the International Committee to increase its rate of release at this time. The concern of producers over changes in the rate of production does not impress in view of necessary fluctuations in the rate of production in the past and the important reasons for increased production now even though a decrease might be anticipated after a period of months. An attempt to prevent increases here in the rate of production of steel, aeroplanes, and other commodities in demand for export no doubt would be considered unreasonable by the British.
3.
It would seem unfortunate to concentrate buying of the bulk of the Agreement rubber in the first quarter of 1940, and in any event any great increase in production in that quarter would appear to be impossible because of the wintering season; hence, the urgent suggestion that the Committee increase the rate for the present quarter even if the distribution of the additional coupons to the Dutch natives should be delayed until the next quarter.
4.
If the suggestion for quota increases in the present quarter and the next quarter is not acceptable, how does the British Government propose to make the Agreement rubber available without further delay?

Hull
  1. Latter not printed.↩