The Ambassador in Brazil (Berle) to the Secretary of State
[Received October 3—1:38 a.m.]
3033. Alleging acute transportation situation, Argentine threatens suspension wheat shipments to Brazil unless latter makes available immediately tires and coal. We have taken stand that Brazil should not ship tires unless willing to cancel tire and synthetic rubber agreements. President Vargas recently mentioned to me that two Argentine vessels had already left for Brazil empty of wheat. According to local trade wheat stocks, Argentine ports are so depleted that compliance on part of Brazil would not insure wheat supply November and December. Regardless real situation Argentina, Brazil should not be held up in this way. It is also most important that a wheat shortage not become an electoral campaign issue. Understand Argentine wheat exports to Brazil have been averaging 100,000 tons monthly.
Urgently request Department explore and inform me as to possibility Brazil obtaining US wheat at reasonable price.