811.24 Raw Materials/1131a: Telegram

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

1277. Sir John Hay arrived a few days ago and conversations with him are now under way.

The Reconstruction Finance Corporation and rubber industry have formed a joint corporation to which they both contribute capital. The [Page 274] prospective purchases of rubber will be financed by loans from the Reconstruction Finance Corporation to this corporation. The current discussions are centering upon the method by which the added extra supplies can be most certainly and speedily procured and also upon the possibility of a price understanding.

Since these discussions may take some days, Sir John Hay and Jones37 agreed that it would be mutually advantageous, if it is practicable, to have existing stocks of rubber estates in the East shipped immediately either to the United States or Canada. Sir John Hay has suggested to his group in London that such shipments might be consigned to him unless some other more satisfactory basis can be arranged. The thought is that full details of the purchase agreement will be worked out before the rubber actually arrives on this side.

Hay anticipates that this suggestion is now being discussed by members of the Rubber Committee and the Colonial Office.

We greatly hope that a favorable decision will be reached and such shipments commenced as early as possible. We think that if shipping should prove to be a problem we can greatly facilitate that.

We give you this for information and for such action as you may deem advisable looking towards the end of getting favorable and speedy decision.

Hull
  1. Jesse Jones, Federal Loan Administrator; also appointed Secretary of Commerce, September 19, 1940.