Mailbag.

Dear editor:

I agree with the statement by the Malaysian minister quoted in your July editorial that the natural rubber producers "have been bullied by the buyers and the tire companies for too long." I also agree with your comment that the tripartite proposals of Indonesia, Malaysia and Thailand will not work in the long term. The topic of a fair price for natural rubber needs ventilating and fresh air rather than hot air blown on it. Hence my response.

The basic problem is that some ten companies buy more than half the material, which is made by several million smallholders. The buyers adopt a hard-nosed policy, which is understandable as this is the environment in which they operate.

However, it is not in their best interests long term. As Malaysia, Indonesia and now Thailand become more affluent, their smallholders change to growing pineapples and palm trees. Some less developed country then supplies the lost rubber, with inevitable less technical know-how. As is public knowledge, from Vietnam to Guatemala across the wet equatorial countries, they all have their plans for growing natural rubber. The end will be a thinly spread downmarket one. What to do out in this capitalistic world? What action should be taken by the tire companies?

The first thing is for them to treat the raw material not as an agricultural commodity but as an individual material which has to have the right molecular weight distribution of almost pure polyisoprene for their tires.

The second is to blend their thinking to producing an ethical policy. As a starter, why not tie their purchase price for NR to that of their SBR? The rubbers are not competitive. They could even revert to buying on technical specifications.

The third thing is to join The International Rubber Study Group and set up there discussions with all industry parties. So much needs thrashing out - mutually necessary R&D, future scenarios and anticipating them, mutually profitable segments, interactions with governments, etc., etc.

The suppliers should first scrap their present tripartite proposals. Second, they should reinstitute their lines of communication by INRO without the stockpile. Third is for all suppliers and potential suppliers to join IRSG. By its own actions, rubber is a sunset industry. By its own actions, it can create a new dawn.

W.F. Watson, WNP Limited