MR. J. G. HAY'S VIEW The speech which Mr. J.
G. Hay delivered on Wednesday to the shareholders of United Sua Betong left no doubt as to the difficulties which confront the rubber industry. It will (Continued on page 1039)
FINANCIAL NOTES (Continued from page 1036)
command particular attention both because Mr. Hay is a member of the International Rubber Regulation Committee, and because he has just returned from an extensive tour in the East. The severe limitation of production enforced by the 45 per cent. quota is in his view bound to lead to increased costs, so that unless it also produces a substantial increase in price, the plantation industry will be little better off. He also admitted freely that a lesser release than the 90 per cent. in the second half of 1937 would have been ample for manu- facturers' requirements, but pleaded that the International Committee should not be judged on that account in ignorance of the kind of pressure to which it had been subjected. In resisting that pressure he said they were not helped by the industry's own spokesmen who had confidently predicted that the major countries, particularly Malaya, would be unable to produce their quota. As to the future of industry Mr. Hay is particularly anxious for an examination into the cost of production in Malaya compared with competing countries.
It would in his view disturb seriously existing complacency. * * * *
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