891.24/360: Telegram

The Chargé in the United Kingdom ( Matthews ) to the Secretary of State

662. Department’s 397, January 18, 4 p.m., and Embassy’s 508, January 20, 11 a.m. Foreign Office now informs us that it agrees that recommendations regarding wheat from North America and barley from Iraq should be approved and that it has instructed British Embassy at Washington so to advise Department. Foreign Office adds that British shipping authorities in United States are being told to take up with the appropriate American authorities the arrangements that have to be made, so that adjustments can be effected in the shipping programs.

Experts who have been consulted have informed Foreign Office that only about 10 percent shipping space would be conserved if flour were substituted for wheat. This the experts explain is because of the high percentage of flour which is being extracted from wheat in Iran. While the danger exists that flour if stored for over a month in the extreme heat prevailing in the Persian Gulf would deteriorate, these experts are nevertheless giving consideration to shipping some flour for experimental purposes. Should it be definitely decided to do this Foreign Office will advise us.