The Ambassador in Argentina ( Messersmith ) to the Secretary of State
[Received 5:47 p.m.]
1671. Embassy’s telegram 1512, June 3.35 Local tire companies have informed Embassy their supply situation critical and if immediate shipments synthetic and natural rubber not made factories will be forced close by September 1. Argentine Government official reports wheat shipments made accordance commitments with Brazil. Brazilians in Buenos Aires are reported to be attributing delays in tire shipments to opposition of US.
Although shipments of 30,000 tires in large measure relieved grain transport problem, Government and tire companies consider that 60,000 passenger car and 12,000 truck tires in addition to domestic production capacity required correct existing transport problems. If possible Embassy recommends allocation these additional units for shipment last 6 months, and in granting export licenses recommend Goodyear and Firestone be given their proportional share.
Deerwester’s statement (Department’s telegram 814, June 1436) doubtlessly based undistributed balances of 30,000 units. This situation rapidly clearing up. Truck statement absolutely unfounded.