The proposed agency of Rubber Reserve Company will be fully
informed with respect to the conservation measures in effect in the
United States, including the information referred to in paragraph two
of the Embassy's telegram no. 344 of April 29.
  It is suggested that the Ambassador request the appropriate officials
of the Ecuadoran Government to issue an embargo on the export of
crude rubber and of rubber products pending the signature of the
agreement.
  It is suggested that when the form of the contract has been agreed
to, it be signed by the Republic of Ecuador and forwarded to the
Ecuadoran Embassy here for delivery to the Department to obtain
the signature of Rubber Reserve Company. At that time notes would
be exchanged here between the Department and the Ecuadoran Em-
bassy confirming the execution of the agreement.


811.20 Defense (M)/7435
  The Anbassador in Ecuador (Long) to the Secretary of State

No. 3142                                   QUITO, June 19, 1942.
                                              [Received June 24.]
  Sm: I have the honor to report that, following the receipt of the
Department's telegram No. 423 of June 17, 10 p. M.,74 an appointment
was made to discuss the rubber purchasing agreement with the Min-
ister of Finance. Messrs. Lamb, 5 Tewksbury,76 and I called on Mr.
Illingworth late yesterday afternoon, and he is in accord in principle
with all of the conditions outlined in the various instructions from the
Department.
  The Minister of Finance stated that it would be necessary to issue
a decree by which stocks of rubber would be embargoed and exporta-
tion of rubber to any country, except the United States would be pro-
hibited. Provision would be made in the decree for the payment of
the price established in the contract for all stocks of rubber now on
hand in ports in Ecuador. The decree would also authorize some
member of the Government to sign a contract on behalf of Ecuador
for the purchase of rubber.
  The one point regarding which Mr. Illingworth apparently feels
somewhat uneasy is the question of rubber which has been purchased
by Ecuadoran exporters and which may have been purchased at prices
in excess of 33 cents. He inquired if there was not some provision

74Not printed.
Eric Lamb of the Rubber Reserve Company.
'Howard H. Tewksbury, Commercial Attach6.



ECUADOR



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