The Secretary of State to the Ambassador in Brazil (Berle)
177. ReEmbs 213 Jan 30.2 Dept has no objection to Braz sending 10,000 tires to Arg, providing none are taken from Braz production up to and through Jan 31 in accordance with oral pledges made at time of cancellation of tire and tube agreement.3
Believe both impossible and unwise suspend embarking tires for Arg. First shipment totalling 4,000 tires left US for Arg on Feb 2 and balance to be shipped over period of 90 days.
As stated in Depts 126 of Jan 25,2 is understood Braz would be included in any international allocation plan drawn up with Arg cooperation and that to extent Arg not indicated as source for all of wheat considered by CFB to be share of Braz in light of world deficit, other sources would be indicated. Since effecting of a coordinated pattern for shipments from export countries may take considerable time, is proper Arg make arrangements with Braz to assure continuation of shipments from that country, which is logical source. Braz needs could not, as implied in Embs 213, have already been “definitely provided for by Combined Board” apart from cooperation of Arg in making available her wheat for export. This true because of great world shortage (see Depcirairgram Dec. 262). Furthermore any CFB allocation which might be recommended would not exclude necessity for bilateral arrangements between the exporting and importing countries implementing allocations indicated. The sooner therefore Braz reaches an understanding with Arg in this matter the sooner will she have received the assurances with regard to fulfillment of her import needs which she so much desires.
CFB will only make “definite allocations of Argentine wheat” (reEmbs 231 Feb. 1, 19462) if and when international allocation set up. Prerequisite for any such allocation or joint programming is cooperation of Arg in working out amounts and destinations of [Page 113] wheat to be exported from that country within a given period. Any wheat quota arranged for by Braz with Arg in exchange for tires would be deductible from the total for Braz.
It is not contemplated that Braz stated requirement can be fully met, particularly for first half 1946. A total of 460,000 tons for first half has been tentatively proposed, most of it to come from Arg. This figure is not at all definitive and is subject to further reduction if the prospective world wheat supply position worsens. This amount could however be taken now as indicating an absolute maximum for the half year.