800.6363/786: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
1721. When you communicate to the Government of Brazil Department’s circular telegram of this date17 you should state in addition that this Government has in mind the importance to the war effort of certain oil consuming activities in Brazil in addition to those already included in the war essential category for which full oil supplies are furnished. One example of such consideration on the part of this Government is seen in Department’s telegram 1680, June 26, in which assurance is given of intention to supply the full requirements of petroleum products necessary for maximum production and transportation of raw rubber. This Government is awaiting the arrival of General Barbosa18 for discussion of other oil consuming activities which should similarly be classified as war essential.
Despite these efforts on the part of this Government to alleviate the burden which world wide tanker shortage has brought upon Brazil it [Page 737] must be noted that the record of gasoline consumption within Brazil during the first 4 months of this year in comparison with consumption during the same period in 1941 does not indicate that any effective measures were taken by the Brazilian Government during the early part of this year to conserve this important product. On the contrary the figures available to this Government show that the use of gasoline during that 4 month period was 4.3 per cent greater in 1942 than in 1941 instead of approximately 20 per cent less as had been recommended by this Government.
The Department has observed with satisfaction that conservation measures recently introduced have reversed this trend and the month of May shows a substantial reduction in gasoline use although the first 5 months total is still approximately the same as the corresponding total in 1941.
The Department is confident that the commendable program of conservation indicated by the reduced consumption in May will be continued and intensified in order that the civilian supplies during the remainder of 1942, at less than one half the 1941 rate, will not critically disturb the national economy. In stating that no improvement in the oil transportation situation is foreseen earlier than the end of this year the Department does not magnify the seriousness of the tanker shortage.