816.6363/75: Airgram
The Secretary of State to the Ambassador in El Salvador (Thurston)
A–286. Your despatch no. 381, May 19; A–155, May 25; and A–212, June 12, 1943.29 The following memorandum has been handed to the Salvadoran Economic Mission:30
“As the Salvadoran Economic Mission is aware, careful consideration, in the light of the continuing serious tanker situation, has been [Page 318] given by the Essentials Requirements Committee to the statement regarding Salvadoran Consumption and requirements for gasoline and diesel oil which was furnished the American Embassy at San Salvador by Señor Alfredo Mejia. The additional memorandums, presented by the Mission in regard to this subject, have also received most careful consideration.
“The following table sets forth the amounts of petroleum products which had already been scheduled to be supplied to El Salvador for the year 1943 for war essential uses:
| Bbls. 42’s. | ||||||
| Aviation Gasoline | Motor Gasoline | Refined Oil | Gas Oil | Fuel Oil | Total | |
| Military | 1,400 | 5,400 | — | — | — | 6,800 |
| Commercial Airlines | 3,500 | 100 | — | — | — | 3,600 |
| Bunkers | — | — | — | 200 | 10,000 | 10,200 |
| Pan-American Highway. | — | 2,200 | — | — | — | 2,200 |
| Coffee Industry | — | 7,900 | — | 11,300 | — | 19,200 |
| I.R.C.A.31 | — | 300 | — | 500 | 98,000 | 98,800 |
| Sisal | — | 100 | — | 800 | — | 900 |
| Total Essentials 1943 | 4,900 | 16,000 | — | 12,800 | 108,000 | 141,700 |
“The memorandums from the Salvadoran Economic Mission request additional amounts of gasoline and diesel oil for highway construction. Requirements for petroleum products for the construction in El Salvador of strategic highways will be supplied on a war essential basis, and all such requirements should be transmitted through the Salvadoran Pool Committee to the Petroleum Supply Committee for Latin America, which will make the necessary amounts available. In this connection, it will be noted that the above table already lists an estimated quantity of 2,200 barrels of gasoline for the Pan-American Highway.
“Additional quantities of gasoline totaling 1,302 barrels of 42’s and additional quantities of diesel oil totaling 968 barrels of 42’s will be supplied to El Salvador for the period May 1 to December 31 for the following war essential uses:
| Bbls. 42’s. | |||
| Gasoline | Diesel Oil | ||
| Coffee | 997 | 759 | |
| Civil Aviation | 42 | ||
| I.R.C.A. | 178 | 209 | |
| Rubber | 9 | ||
| Roselle (Defense Supply Corp.) | 76 | ||
| Total | 1302 | 968 |
“Moreover, additional global allotments of 1,208 barrels of gasoline and 1,673 barrels of diesel oil will be supplied to El Salvador for the period requested by the Mission, that is, from May 1 to December 31, 1943, for purposes essential to the economy of El Salvador. While these allotments are subject, as in the case of the 40 percent quota, to such allocation as the Salvadoran authorities may see fit to make, they are made available because of such needs as those of the Salvador Railway and Agencia Salvadorena (truck service to the port of La Libertad), the requirements for which, as given in the statement from Señor Mejia, were fully included.
“With respect to the Mission’s request, contained in its memorandums,32 that an additional quantity be made available for the International [Page 319] Railways of Central America, it is pointed out that the new allotments for war essential uses include 178 barrels of gasoline and 209 barrels of diesel oil for that railway.
“It is noted from the Mission’s Memorandum that, in accordance with the conversation between the Mission and officers of the Department, a statement concerning the kerosene requirements of El Salvador will be transmitted through the American Embassy at San Salvador. This statement of requirements, when received, will be given the most careful consideration.”
The Supply Committee for Latin America is being instructed to make available to El Salvador the additional new allotments as set forth in the above memorandum, and the Salvadoran Economic Mission has been advised that the contents of the memorandum would be sent to you.
The question of establishment, in accordance with supply pool principles, of a supply pool committee has been discussed with Sr. Bustamante. Since the Inter-American Petroleum Supply Pool is a collaborative endeavor among the participating countries, it is considered advisable that each such country establish a pool committee consisting of representatives of the government and of the petroleum companies supplying the country. These committees are national committees of the participating countries and are in no sense subcommittees of the Petroleum Supply Committee for Latin America. The latter committee makes supplies available in accordance with instructions based on supply pool principles, and does not formulate policy in regard to the operation of the pool. The national pool committee should collaborate with the Petroleum Supply Committee for Latin America in regard to petroleum supplies and with the rationing and other interested agencies of the local government.
The advisability of formalizing the Salvadoran pool committee along the foregoing lines was suggested to Sr. Bustamante, who indicated his agreement. It was requested that you also discuss this matter with the appropriate Salvadoran authorities.
With reference to our A–250, May 31 and your A–185, June 4,33 we have considered with the Mission the question of Salvadoran rationing of allotments available to Salvador. This examination with the Mission of consumption as compared with allotments during the first 4 months of 1943 indicates that the rationing of gasoline by Salvadoran rationing authorities has been very good, the amount saved more than offsetting the over-consumption of gas oil and kerosene. In this connection, as you know, within its total allotment a country may substitute more of one product for less of another. The over-consumption of fuel oil apparently has been in the war essential category, which of course is not subject to rationing, and indicates [Page 320] either that needs have been underestimated or that consumption has been at a rate greater than actual needs. From information contained in your A–15534 it appears that excessive quantities may have been allotted to essential requirements.
On the basis of the foregoing, the Mission was complimented on the fact that in general Salvador appears to have done good work in rationing during the first four months of this year. You should, however, continue on appropriate occasions to urge that this good work be continued and that rationing be kept strictly within available allotments. The Salvadoran authorities must continue to keep clearly in mind that the tanker situation continues serious and that all deliveries are subject to the exigencies of war.