856D.6176/124
The Minister in the Netherlands (Swenson) to the Acting Secretary of State
[Received January 18.]
Sir: With reference to my despatch No. 855, of December 15th, last, I have the honor to report that the Counselor of the Legation [Page 618] was informed today by Baron van Lynden that in his opinion the international plan now under consideration for the restriction of rubber output will come into effect in April or May next. According to Baron van Lynden it is likely that the price of rubber for the first year of the plan will be four pence a pound. The Dutch are insisting on this figure rather than the six pence envisaged at first on account of the difficulty in organizing the restriction of the native output of rubber in the Netherlands East Indies. It seems probable that during the first year the native rubber will not be restricted but will be made subject to an export tax. After the first year it is planned to make the restrictive rules apply to all producers.
Several prominent producers here are, however, not in accord with the above opinion and are sceptical as to the prospects of a satisfactory solution of the restriction problem. There is, they declare, not only the controversy on plantation versus native rubber to be overcome, but the European producers are divided into two camps. The main difficulties are: (1) The question of which year of production is to be taken as the basis for the restriction quota; and (2) the matter of the sliding scale of export duties required to check clandestine exports of native rubber.
I brought both the above opinions today to the attention of Dr. Colijn, the Prime Minister and Minister for the Colonies, who made the following comments:
“I am not so sceptical as to finding a solution of the restriction problem. However, I do not believe that an agreement will be arrived at soon. I understand that conferences are still to be held in London for further discussion of the matter. As to the probability of four pence being agreed upon as a reasonable price, that is, in my opinion, likely to be the figure, as I have previously stated to you.”
Respectfully yours,