835.6363/646
The Secretary of State to the Chargé in Argentina (Reed)
The Secretary of State informs the Embassy, after consultation with the Office of Economic Warfare, that since the first part of July the Office of Economic Warfare has received a number of export license applications with Certificates of Necessity approved by the Embassy under dates ranging from June 2 to August 3. These applications called for lubricating oils, greases, mineral oil and petrolatum for various purposes and have totalled to date about 700 metric tons.
While very few applications conformed to the approved end uses [Page 403] mentioned in Department’s A–1140 of July 2,54 namely, railroad and packing plant requirements and mining companies whose products are being taken by the War Production Board, it was assumed that this was due to a misunderstanding of the actual situation with respect to petroleum products, probably caused by the Department’s telegram 822 of June 4, 8 p.m.54
In order to dispel whatever confusion may exist, the Embassy is advised that petroleum products are under allocation and so issuance of Certificates of Necessity and licenses for them come under paragraph two (e) of the memorandum of August 26 on economic policy toward Argentina.55
The approved end uses therefore will be those specified in the Department’s airgram 1140 and in addition the supplemental uses included in paragraph two (e) of the memorandum cited. The supplemental uses will be carefully scrutinized and considered individually by the Office of Economic Warfare. Therefore, license applications coming under these categories should give detailed breakdowns of the end uses to insure that none of the product will be consumed in improper uses.
With specific reference to refined paraffin wax which is in critical supply and to crude scale which is only somewhat less so, they will not be available at all for the present.