Evening star., 1939-06-24
Cotton-Rubber Deal Text
United Stotes and Brtuin Lay In War Goods
BY Exchange Provisions

be calculated upon the average mar
ket price, as published by the De-
partment Of Statistics In the Straits
Settlements, for No. l ribbed smoked
sheets, during the period January
1st-June 23rd, 1889. for spot delivery
at Singapore plus OBS Straits Settle
ments cent per pound for cost Of
baline and delivery on board ship,
with adjustments in price for other
grades according to differences
quoted in that period.
CD The rubber will be inspected
and accepted by experts appointed
by the United States Government.
Any disputes will be settled In ac-
cordancc with the normal custom Of
the trade
(c) The rubber will be made avail
able for inspection and acceptance
by experts appointed by the Govern
ment of the United States during
a period of six months beginning at
a date to be agreed upon by the
two governments, and such inspec-
ton and acceptance will be made
within reasonable time after the
rubber is so made available. Deliv-
cry at the warehouse at the port Of
shipment with provision for free de-
livery on board ship will be made
within a period of Is days after in
spection and acceptance, and stor-
age and insurance charges will be
borne by the government of the
United Kingdom for period of two
weeks, but no more, after delivery
at the warehouse at the port of ship
ment.
3. If either government should
find that delivery in accordance
with the arrangements specified in
paragraphs / and 2 Is likely to re-
strict supplies available to CONNER
cial markets unduly or to stimulate
undue price increases, the two gov
ernments shall consult with a view
to postponing delivery or taking
other action in order to avoid or
minimise such restriction of supplies
or such price increases.
Liquidation Requires Consultation.
4. The intention of the United
States Government and of the gov
ernment of the United Kingdom
being to acquire reserves Of cotton
and rubber, respectively, against
the contingency of major war
emergency. each government under
takes not to dispose of its stock
(otherwise than for the purpose of
| replacing such stocks by equivalent
quantities in so far as may be ex-
pedient for preventing deteriora-
tom except in the vent of such
an emergency.
If, however, either government
should at any future date decide
that the time has come to liquidate
its stock of cotton or rubber, as
the case may be. it may do so only
after CAD consulting the other gov
eminent as to the means to be en-
ployed for the disposal of such stock.
and tBD taking all steps to avoid
disturbance of the markets. In no
case may either government dis
pose of such stocks, except in the
| case of major war emergency,
before a date seven years after the
coming into force of this agreement.
S. The government of the United
Kingdom will use their best en-
deavours to secure that the export
is permitted under the international
rubber regulation scheme of an
amount of rubber approximately
equivalent to the amount of rub
ber TO be supplied to the United
States Government under this
agreement in addition to the amount
of rubber which would under the
normal operation of the scheme be
released to meet current consump-
ton needs.
To Divide Shipping Business.
s. Each government undertakes.
in shipping to its own ports the
stocks of cotton and rubber, respec-
lively, provided for in this agree
ment. so far as may be possible to
distribute the tonnage equally be-
tween the ships Of the two countries,
provided that the shipping space re-
quired is obtainable at reasonable
! rates. Consultation for the purpose