102.78/11–1946: Telegram

The Acting Secretary of State to the Ambassador in Ecuador (Scotten)


418. Ur A–359 Oct 30.4 From State and Agriculture. Canada reports wheat and wheat flour exports Ecuador 1945–46 as follows: Wheat 71,975 bu and flour in wheat equivalent 22,090 bu. US exports flour same year equaled 1,100,000 bu wheat equivalent. OFAR estimate Ecuador wheat production same year placed at 850,000 bu. Total supply available from the 3 sources approx 2 million bu. Planned Canadian export to Ecuador of 37,333 bu wheat in 1946–47 expected move current quarter. July-Sept quarter Canadian export flour 78,000 bu wheat equivalent. July-Dec semester US flour quota in wheat equivalent 362,000 bu. Ecuador on Canada’s “A” list for flour exports, and US has made recent change in control of flour exports to West Hemisphere countries including Ecuador which, is expected to increase movement flour this area. OFAR indicates Ecuadoran wheat production this year should exceed previous year slightly. With this indigenous production and liberalization Canadian and US flour exports, it appears availability Ecuador in 1946–47 of wheat and flour from these sources should approx 1945–46 availability. In view limitations imposed on US grain exports by transportation difficulties and extreme needs many areas to which exports have been scaled down drastically below requirements, we believe Ecuador should meet its emergency by diverting to food use largest possible proportion of its wheat production.

However following is proposed alternative: Emb has been advised in plain circular tel from Agri Nov 194 that no further quotas will be [Page 883] established for shipments wheat flour to countries in West Hemisphere. Shipments flour can now be made under general license without necessity securing export licenses from Commerce. To meet situation described urtel 549 Nov 15 and provide bread, Ecuador should promptly seek purchase flour in Amer markets and arrange for immediate shipment.

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