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The Chargé in Venezuela ( Dawson ) to the Secretary of State

restricted

104. Current rumor in market is that in view grain situation our Govt will prohibit all exports wheat flour until May 1.

Embassy anticipates inquiry of Venezuelan Govt.

If for overall reasons temporary curtailment of United States wheat flour exports is necessary Venezuelan situation will need special consideration. Wheat flour stocks were dangerously low and were relieved only yesterday on arrival 3 ships with 27,000 sacks. Embassy considers it of vital political and economic importance to maintain adequate shipments to Venezuela of wheat flour. Venezuelan Govt has lowered bread price as measure of internal stability. Failure of flour supply would have far-reaching internal effects.

Dawson