FOREIGN RELATIONS, 1942, VOLUME VI



811.20 Defense (M)/6245: Telegram
The Ambassador in Panama (Wilson) to the Secretary of State

                                 PANAMA', April 20, 1942-A p. m.
                                            [Received 10: 02 p. m.]
  332. Your 249 of April 10. Minister of Foreign Affairs replies
that price of 35 cents per pound in New York offered by Rubber Re-
serve is not sufficient to stimulate the production and gathering of
rubber in this country but that price of 40 cents per pound in Panama
would stimulate production and extraction.
  Luedtke ' and Seeley 81 have looked into the question of costs in
getting rubber out under present conditions but find it practically
impossible to establish as there has been no rubber gathering in
Panama for more than 20 years and no data available regarding costs.
Owners of old and abandoned rubber plantations of which there are
a number say they are willing to undertake extraction but do not
want to lose money.
  And in considering statement in Department's instruction number
249 that price offered to Panama is the same as that made to other
producing countries for same type of rubber and Luedtke, and Seeley
feel that in view of the high wage scale and scarcity of labor in Panama
some additional inducement will have to be made if rubber extraction
in Panama is to be stimulated.
                                                          WILSON

811.20 Defense (M) /6824: Telegram
The Secretary of State to the Ambassador in Panama (Wilson)

                             WASHINGTON May 28, 1942-11 a. m.
  469. Your 523, May 23.R2   You are authorized to inform   the
Panamanian Government that the 33 cents per pound offered by
Rubber Reserve Company for rubber in Panama will be on the same
basis as that agreed on with Costa Rica.83 The Rubber Reserve offer is
for castilloa of usual good quality which contemplates tolerance for
moisture and foreign materials. A premium. will be paid for dry sheet
rubber.
  Under plans now in process of execution, Rubber Reserve Company
contemplates the creation of an organization to aid in the development
of the rubber resources of Panama and to carry out its procurement
program there, and has entered into a contract with Chicle Develop-
ment Corporation providing for the purchase of rubber for the account

* Charles L. Luedtke, Agricultural Attache, Costa Rica.
81 George L. Seeley, rubber expert, Office of the Coordinator of Inter-American
Affairs.
"2 Not printed.
"For correspondence on rubber agreement with Costa Rica, see pp. 228
f.



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