103.9169/4042: Airgram
The Ambassador in Uruguay (Dawson) to the Secretary of State
[Received June 15—3 p.m.]
A–305. For Crowley and Dodson, Foreign Economic Administration. Reference is made to the Department’s circular airgram of March 31, 1944, 7:00 p.m.67
It has been the policy and practice of the Embassy, since the initiation of the Decentralization Procedure, to cooperate closely with the Country Agency in screening all projects and programs calling for the Embassy’s assistance in obtaining materials which could not be made available under existing Estimates of Supply. In each individual case supported, the Foreign Economic Administration has been informed, either in a despatch or in a simple memorandum attached to the Import Recommendation, of the pertinent facts and has been requested to approve the application upon an ex-quota basis. In practice, although a large number of such requests have received favorable consideration, no Estimate of Supply has ever been affected nor has the Country Agency ever been requested at any time to use for a specific project or program a part of Estimates of Supply destined for general requirements. It is believed that, as a result of the successful operation of this system, the Country Agency has been more receptive to appeals for assistance and has examined more closely each individual case, instead of flatly refusing to consider any request for materials not available under existing allocations. This would be especially true in the case of commodities in great demand and with relatively small allocations.
The Embassy has hesitated, therefore, in informing the Country Agency of the proposed modification of procedure, believing that [Page 1619] the Country Agency will strongly oppose prior approval of Import Recommendations which might later affect available allocations for general requirements and will adopt the attitude of refusing to consider special projects or programs whose approval upon an ex-quota basis is not assured. The Country Agency has scrupulously endeavored to avoid any possible charges of favoritism and such accusations would undoubtedly be made if any individual applicant received unduly large quantities of critical materials at the expense of the consumers in general.
It is therefore respectfully requested that examination be made of the past procedure of the Embassy in handling locally sponsored projects, programs or requests for materials on an ex-quota basis. In general, this procedure has been in close accord with that proposed, with the exception of possible subsequent charges to allocations for general requirements. If the Foreign Economic Administration concurs with the Embassy’s opinion that discussion of the latter point with the Country Agency is unwise, it is suggested that the present system be maintained and that in the future, no approval be given to any project or program which might affect general allocations. The observations of the Foreign Economic Administration on this point are respectfully requested.
- Not printed.↩