58 STAT.] VENEZUELA-RUBBER PRODUCTION-OCT. 13, 1942 pay an incentive premium of 10 cents (U. S . Cy.) per pound (Kgs. 0.4536) for all rubber produced in Venezuela and in order to offset the high cost of production in Federal Territorio Amazonas shall pay an additional production premium of 19.61 cents (U. S. Cy.) per pound (Kgs. 0.4536) for rubber produced within the boundaries of said territory. It is further understood that the resultant total of price and premiums for smoked ball weak fine rubber produced in Federal Territorio Amazonas amounting to 76.28 cents (U. S . Cy.) per pound shall be distributed in accordance with the following schedule to be established by the Venezuelan Government. Major Contractors 4.08 cents (U. S. Cy.) per pound (Kgs. 0.4536) Sub-Contractors 13.62 cents (U. S. Cy.) per pound (Kgs. 0.4536) Producers 58.58 cents (U. S. Cy.) per pound (Kgs. 0.4536) The above schedule of distribution shall be applied in like proportion with respect to the corresponding differences in price for other types and qualities of rubber produced in said territory. Third: The Government of the United States of Venezuela shall cooperate with Development in the following respects: 1. Restrict the use of tires, tubes, and other finished rubber prod- ucts for essential purposes only, with the ultimate objective of reducing to the greatest extent practicable the quota of rubber allocated to the United States of Venezuela for domestic con- sumption. 2. Encourage the use in the United States of Venezuela of synthetic and reclaimed rubber to the greatest extent practicable. 3. Announce publicly the establishment of the new prices, including establishing the schedule of prices to be paid at interior points. In addition, such schedule of new prices shall be published in appropriate newspapers, and appropriate circulars (to be sup- plied by Development) shall be distributed in the rubber pro- ducing areas. 4. Establish or cause to be established "the fixed price", plus the net premium payable hereunder by Development, plus the bonuses payable by the Venezuelan Government to the contrac- tors and tappers as the price for all purchases and sales of rubber for domestic consumption or use within the United States of Venezuela. It is understood that this note, together with Your Excellency's reply in the same terms, shall constitute a binding agreement between the Government of the United States of America and the Government of the United States of Venezuela. Please accept, Excellency, the renewed assurance of my highest consideration. His Excellency Dr. CARACCIOLO PARRA-PIBEZ, MinisterforForeignAffairs, Caracas. FRANK P. CORRIGAN 1585 Restrictions on use of finished products. Synthetic and re- claimed rubber. New price schedule. Prices for dolrietit consumption.
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