832.61311/8–3047: Telegram
The Secretary of State to the Embassy in Brazil
1062. For the Ambassador from Armour.62 World grain situation is becoming so much more critical daily that it is complicating our efforts to meet Braz needs expressed in your 1202 Aug 30 and telephone call to me.
After canvassing situation thoroughly, best procedure appears to be for Braz to request IEFC for new wheat and flour quotas, justifying its request with figures as to Braz minimum needs, recent production and imports and stocks on hand. It would of course help Braz position immeasurably if it were at same time to rejoin IEFC. We as a govt have undertaken to follow IEFC recommendations and exception would place us in a most difficult position. However if Braz can make case we will support it strongly with IEFC.
Our efforts have been severely handicapped by failure of Braz to give us data on which to work and by indications from Braz sources here that situation is not as critical as represented to you. For example officer of Braz Emb has given Braz minimum requirements as 65,000 tons monthly. If this correct Braz has in last 9 months obtained enough wheat and flour for consumption of over year. Furthermore when suggestion in second pgh made to Braz Emb officer did not want to act pending return of Amb Martins saying that immediate action unnecessary. Also Rio port regulations issued Aug 26 place ships carrying wheat in only fifth of nine priority classes.
Another complication has been dissatisfaction our authorities with Braz Army efforts to circumvent quota system by purchasing 25,000 tons from Overseas Trading Corp (32,000 tons in wheat equivalent) and then asking for special permission to ship. To grant this would disrupt entire quota system. Not a single supplier has been an exporter and normal shippers up in arms over transaction. Commerce adamantly opposed. Attempt has only prejudiced chances of getting needed wheat for overall Braz consumption by arousing natural resentment of tactics.
We are doing all possible but our hands will be strengthened if Braz will coordinate its activities and give us urgently necessary basic info in concrete form. We can get no action without figures justifying it. [Armour.]
- Norman Armour, Assistant Secretary of State for Political Affairs.↩