States, Rubber Reserve willing to enter into an agreement imme-
diately to acquire it. Upon consummation of purchasing agreement
we will be prepared to discuss with Panamanian authorities any use-
ful joint arrangements to increase rubber production.
                                                         WELLES

811L20 Defense (M) /5840: Telegram
  The Amrbassador in Panama (Wilson) to the Secretary of State

                                  PANAMA, March 26,1942-4 p. m.
                                           [Received 11: 12 p. m.]
  213. Reference Department's No. 164, March 19, 2 p. m. [midnight.]
I discussed this question with the Minister of Foreign Affairs 77 on
March 23. He has today informed me that the Cabinet has considered
it and referred it to the Banco Agropecuario for examination and
recommendation as to price. The Minister said that the Government
had already offered certain local rubber producers a price higher than
that proposed by the United States. He will advise me further as
soon as the report is received from the bank.
                                                         WILSON

811.20 Defense (M) /5979: Telegram
The Acting Secretary of State to the Ambassador in Panama (Wilson)

                            WASHINGTON, April 10, 1942-7 p. m.
  249. Your 269 of April 7.78 Price offered to Panama is same as
that offered other producing countries for the same type of rubber,
and negotiations are being rapidly concluded elsewhere on that basis.
If the Government would prefer a price f. o. b. Panama, Rubber Re-
serve is prepared to pay 33 cents f. o. b. Panama ocean ports. The
Department hopes that an agreement can be reached promptly at this
price.
  In connection with the minimum required locally mentioned in your
telegram, please keep in mind the attitude expressed in the circular
telegram of March 28.  It is the belief here that, in view of the loss
of the Far Eastern supplies and the urgent demands for military pur-
poses, uses of rubber in the producing countries as well as elsewhere
must be kept to those absolutely essential and that the producing
countries cannot hope to get disproportionate amounts of the finished
products.
                                                          WELLES

  T Octavio Fabrega.
  78 Not printed; the Ambassador indicated that the price offered was too
low.
  79 Ante, p. 172.



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