102.78/6–1946

The Ambassador in Venezuela (Corrigan) to the Secretary of State

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327. For Agriculture. Re Department’s A–189, June 12.85 Flour situation tight and black market increasing. Your estimated average [Page 1361]of 74,000 cwts per month licensed for first semester 1946 is 20,000 and 333 [20333] cwts less per month than Embassy’s estimated minimum requirements of 566,000 cwts for first semester (Embtel 139 February 25, 7 p.m.86). Minimum requirements second semester 1946 are 566,000 cwts which figure does not allow for under shipment during first semester. Result of Hoover mission was publicity that July, August, September are crucial months and Government and public here beginning appreciate situation. Embassy suggests every effort be made licensing between 80,000 and 90,000 cwts each month July, August, September, after which, if situation permits, increase licensing so as to provide total of above suggested minimum requirements for second semester.

Corrigan
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