611.7131/10–2546
Memorandum of Conversation, by Mr. Howard J. Hilton, Jr., of the Division of Commercial Policy
| Participants: | State: |
| Walworth Barbour, SE | |
| G. A. Costanzo, FN | |
| Howard J. Hilton, Jr., CP | |
| Robert G. Hooker, EE | |
| J. E. King, BC | |
| Francis A. Linville, IR | |
| Wallace McClure, SPA (ESC) | |
| Stanley D. Metzger, ES | |
| Ben T. Moore, CP | |
| Horace J. Nickels, SE | |
| J. A. Stillwell, IR | |
| Agriculture: | |
| Gordon P. Boals, OFAR | |
| Albert Viton, RA | |
| Clayton E. Whipple, OFAR | |
| Commerce: | |
| S. W. Becker, OIT | |
| William M. Friedlaender | |
| K. Koranyi | |
| Stanley Shoup, OIT |
The meeting was arranged to discuss the visit of the unofficial trade mission from Rumania which is constituted by Messrs. Malaxa and [Page 642] Ausnit, Rumanian industrialists, and other representatives of the Rumanian Government and business.
Mr. Barbour, in opening the meeting, raised the question of an allocation of corn to Rumania. He pointed out that Rumania had suffered a severe drought which has resulted in an estimated deficit of a million metric tons of corn. The Rumanian Government, in endeavoring to secure corn from the United States, has made several approaches to the American Mission in Rumania; the Rumanian Trade Mission has also raised the question of obtaining corn from the United States. Messrs. Stillwell, Linville, Whipple, Boals, and Viton said that the Rumanian request would have to be considered in connection with total requirements. They pointed out that there was a general shortage of corn, and it appeared doubtful that an allocation could be made to the Rumanian Government unless the State Department were to request that a high priority be given to shipments of corn to Rumania. Mr. Barbour stated that the Department did not desire to give special consideration on political grounds to Rumania in this connection, but if corn were to be available the Department of State would like to see some allocation of corn made for Rumania.
It was generally agreed that this matter would be studied by IR and the appropriate groups in the Department of Agriculture.
Mr. Friedlaender asked if this mission had some official connection with the Rumanian Government. He was told that the mission was unofficial and represented the American-Rumanian Chamber of Commerce, but not the Rumanian Government, although some members of the mission are in the Government.
The background and general approaches of the mission were discussed. A general understanding was reached that discussions with the mission and with American businessmen who may raise questions with the Departments of State and Commerce regarding this mission would be coordinated between the two Departments.
It was generally agreed that (1) no credits could be extended to the Rumanian Government through instrumentalities of the United States Government at the present time, (2) no steps could be undertaken at the present time to unblock Rumanian funds which are blocked in the United States, (3) American businessmen asking for advice regarding proposals which might be made by Messrs. Malaxa and Ausnit should be informed of the present difficulties facing the United States Government in protecting American interests in Rumania, and (4) the Departments of State and Commerce had no objection to the conclusion of arrangements with Messrs. Malaxa and Ausnit which would provide for trade with Rumania or investments [Page 643] of American capital in Rumania, provided such arrangements are not contrary to the commercial policy of the United States.