811.24 Raw Materials/416c: Telegram
The Secretary of State to the Minister in the Netherlands (Gordon)
137. This Government has urged the British Government to request an increase in the rate of release by the International Rubber Committee from 75 percent to 85 percent for the present quarter and the first quarter of 1940 primarily for the purpose of making the necessary rubber available for delivery to this Government under the cotton-rubber agreement. The British rubber buyer has so far been able to purchase only a few thousand tons for delivery to this Government during the next 5 months. Since American consumers to date have been able to secure only sufficient rubber to meet current consumption requirements there is also a demand for considerable additions to commercial stocks in this country which would take up any small excess amounts of rubber which might result from an 85 percent quota.
It has seemed important that an increase be made retroactively for the present quarter since it may prove difficult to increase production considerably during the next quarter due to wintering in the producing areas. The Department is informed that this suggestion has been blocked largely because of the opposition of the Netherlands delegation on the International Committee, on the score that it is administratively impossible or impractical to arrange for another distribution of coupons to native producers in the Netherlands Indies again this quarter. The Department recognizes that these difficulties are very real but refusal of the International Committee to increase quotas now almost certainly will prevent delivery to this Government, for a period of several months, of the reserve stock of rubber which it urgently requires without delay.
The International Committee meets again to consider the question of further releases, either November 10 or 13. Please place before the appropriate officials of the Netherlands Government a clear explanation of this Government’s interest in the matter. You may express the hope that the Netherlands delegation will not maintain a position which will have the effect of withholding from this Government and from American consumers stocks of rubber which are urgently needed as minimum reserves here. It may be that the administrative difficulties in the Netherlands Indies can be overcome, perhaps through postponement of increased production by natives until the first and second quarters of next year; in any event, it is believed that the Netherlands Government will not wish to have necessary delay in these native areas used as an excuse to prevent [Page 891] immediate increases in production in other areas. The position apparently taken by Dr. Hart in London gives an unfortunate impression of inflexibility in the international scheme.