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193223073
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Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Deputy Secretary of Defense Robert Lovett
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193223073
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Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Deputy Secretary of Defense Robert Lovett
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Dean Acheson Papers
Secretary of State Files
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193223073
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1951-01-06
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1951
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56
TOP SECREL
9
TRUMAN
January 6, 1951
ARCHIVES SERVICE'S "NATIONAL RECORDS AND
Memorandum of Telephone Conversation
NY COVERNERY
Mr. Lovett telephoned the Secretary to say that Mr. Pace
had told him about the Secretary's concern over the emergency
orders which it was proposed to issue on rubber buying. (The
Secretary had evidently heard about the matter at home last
night from Mr. Thorp.)
Mr. Lovett said the reason for the proposed order was a
very specialintelligence report, which Mr. Lovett had thought
came from the White House through General Bradley to
Mr. Pace. Mr. Pace had asked Mr. Thorp to use his best
interests with the British to close the open market on rubber.
The Secretary said he thought this report had gone around
a circle. Some people from the White House had come over and
talked to the desk officer, who told them what was already known
from the last National Intelligence estimates. This, the Secretary
was convinced, was all there was to the "special information."
In any event, he said, the steps they were planning to take would
not accomplish anything except to take rubber away from other
people, the other people being our friends, to whom we would
have to sell the rubber back at a very high price. Mr. Acheson
said this was so because, as he understood it, there was no open
market for rubber, but it was all contracted for on futures. If
you take it away from someone who has already bought it, you
simply run the price up even further than the present very high
price. Mr. Acheson assured Mr. Lovett that they had rechecked
with G-2, General Smith, and our own intelligence people, and
that there was nothing new in the situation to warrant this proposed
action.
Mr. Lovett said he would have Mr. Pace get together with
Mr. Thorp and work the matter out.
DECLASSIFIED
STATE DEPT. MEMO P-1-14
L. D. B.
Project NLT F2-4
By NLT- HU NARS, Date 9.5-24 TOP SECRET
S:LDB:dhm