851.5018/4–2947: Telegram
The Secretary of State to the Under Secretary of State for Economic Affairs (Clayton) at Geneva
236. For personal attention of Mr. Clayton. Since telephone conversation with you Apr 23 have been doing everything possible increase shipments grain to France.
No commitment of 553,000 tons from US ever made to French Minister. You will recall we talked with French Minister and Ambassador Bonnet in your office concerning French requirement. We both pointed out that under present demands on US for grain it was not likely we could even ship 423,000 tons referred to by French as now scheduled from US. Present schedule of shipments Jan through June for France now actually amount to approx 461,000 tons, which includes an emergency allocation of 33,000 tons flour for Apr and May shipment announced Apr 15. Also including emergency allocation 36,000 tons wheat and flour for May shipment announced by Secretary Agri Fri, Apr 25. We already had schedule of shipments amounting to 1,500,000 tons a month Jan through June. Our schedule of shipments now Apr through June for over 1,600,000 tons each month. This has created unusual pressure on shipping facilities and also continued pressure on grain market. Entire Cabinet and President are of opinion that any additional demands on grain market at this time will simply further inflate grain market and produce no additional grain for export. Continued pressure from foreign press, particularly claims by French concerning US commitment 553,000 tons, also has inflationary effect on market which tends to drive wheat and corn into hiding.
For your private information Agri officials believe additional corn cn be procured for shipment to France in June, probably amounting to 50 or 60,000 tons.
French officials should be made to understand that we will come as close to the 553,000 ton figure as possible. It is not practical, however, to expect the total to reach more than about 500,000 tons by end of June. Early July shipments to France could more than make up the balance required. French officials also should recognize that further pressure through the press will react adversely and perhaps reduce the quantity of grain available for shipment. French officials should be told only of the 463,000 tons presently scheduled, as mentioned above. Any amounts above that will depend entirely on ability to procure additional corn in present unstable market and continuance of total [Page 707] shipments of more than 1,600,000 tons monthly. Suggest you convey any information herein you deem advisable to Caffery.