RUBBER INDUSTRY

Southland Times, Issue 21660, 23 March 1932, Page 7

RUBBER INDUSTRY

EFFORTS TO IMPROVE SITUATION. NEED FOR REDUCING STOCKS. (British Official Wireless.) Rugby, March 20. A Colonial Office communique states that the British and Netherlands Governments in association with representatives of rubber growers in British and Dutch overseas territories, have been engaged in negotiations in order to see whether a practicable scheme for the improvement of the rubber situation could be devised. In the course of these negotiations the British and Netherlands Governments have consulted the Governments of Ceylon, Malaya and the Netherlands Indies. The stocks of rubber in the world at present are huge, being estimated at about 600,000 tons. It was agreed that if stocks could be got down to 300,000 tons or six months’ supply, it might be regarded as reasonable. The negotiations showed that although the difficulties regarding plantation rubber might be overcome and it might be possible, although difficult, to deal with native production by quota in Malaya and Ceylon, insuperable difficulties arose in regard to the Dutch East Indies, it being found impossible to ascertain even the area of native production in Sumatra and Java. A scheme based on a quota for plantation rubber and an export duty for native rubber was then considered. The conclusion was, however, reached that an export. duty on native production gave no guarantee of restriction in the native output, and the negotiations were discontinued. The effect of the failure of the negotiations on the rubber market, has, it is believed, been very largely discounted. INSUPERABLE DIFFICULTIES. (British Official Wireless.) (Rec. 5.5 p.m.) Rugby, March 21. Questioned in Parliament regarding the negotiations to restrict the output of rubber, the Colonial Secretary, Sir Philip Cunliffe-Listcr, said they revealed that the practical difficulties were such as to preclude the adoption with a reasonable prospect of success of any comprehensive effective scheme. He was satisfied this conclusion was inevitable in all the circumstances, and it had been reluctantly accepted by both the British and Dutch Governments. If the French plan were not accepted some other plan must be devised and set in motion. It was the British experience that the strongest and most durable institutions were those which had expanded naturally. RUBBER MARKET SLUMPS. London, March 21. Owing to the failure of the restriction negotiations rubber fell to iRI per lb, the lowest level on record.