832.24/12–545: Telegram

The Secretary of State to the Ambassador in Brazil ( Berle )

2711. ReEmb’s 3558, November 30.96 Dept is concerned that negotiations of Brazil to secure wheat from Argentina have reached impasse in view of fact emphasized in Dept’s 2450 of October 1597 that wheat sent to Brazil from US would have to be subtracted from amounts programmed to liberated areas. Oil and coal are now going to Argentina in considerable amounts and Dept has under consideration means for making available as speedily as possible truck tires without provision of which Emb Buenos Aires declares wheat stocks in Argentina “literally cannot be moved”. Since it is expected provision of these tires will make possible export of wheat from Argentina, it does not appear realistic to make any specific determination at this time regarding shipments of wheat to be made 1946. Furthermore programming is on month to month basis. Program of shipment for December has already been worked out but that for January will be considered at a later date when attention will be given to needs of Brazil along with those of other claimants.

With regard urgent need for flour to be shipped in December for consumption in Brazil during January, attention of Emb is called to fact reported by Agri that Brazilian purchases of US wheat flour during November alone totalled 911,800 cwt. (45,590 short tons) or almost 50 percent more than sum of purchases made 6 months May to October. In addition Brazil has been purchasing considerable amounts of flour milled from other than US wheat (i.e. Canadian) for shipment from US and presumably also for shipment from Canada. Precise information concerning amounts already shipped Brazil being sought from Trade. WSA98 reports flour to Brazil being lifted slowly and is quite clear therefore that amounts already purchased and still outstanding for shipment to Brazil are of magnitude to go far toward meeting requirement as given by Emb for shipping in December and consumption in January. 17,000 tons wheat purchased by Brazil for shipment from Galveston reported by WSA to be shipped second week December.

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Immediate problem one of shipping of flour, since export licenses are not required. United Maritime Authority optimistic regarding possibility prompt assignment additional space flour Brazil but states accepted procedure requires representation by Brazilian Government directly to UMA. Brazilian Emb Washington has been so advised by Dept and will presumably present a statement emphasizing need for assigning additional shipping from pool to carry flour Brazil December.99

Byrnes
  1. Not printed.
  2. Not printed; in it the Department indicated that United States wheat should be shipped to Brazil only as a last resort (832.24/10–1245).
  3. War Shipping Administration.
  4. In a communication dated December 14, 1945, from the Office of the Brazilian Commercial Counselor in Washington, the intercession of the Department of State was sought to restore the previous level of Argentine wheat to Brazil; for its part, Brazil would offer 10,000 tires to Argentina to relieve transportation stringencies (832.61311/12–1445).