823.61311/11–1747

The Acting Secretary of State to the Peruvian Chargé ( Fernández-Davila )

Sir: I have received your note No. 5–3–M/242 dated November 17, 1947,79 in which you point out that the high price of Argentine wheat and the obligation to furnish to that country large quantities of oil in exchange for grain shipments make it desirable for the Peruvian Government to suspend all wheat purchases from Argentina. It is observed that the Peruvian Government will suspend these wheat purchases if the Government of the United States can give assurances that it is able to supply 12,000 tons of wheat per month to Peru, which quantity, it is stated, represents the estimated minimum consumption needs of Peru for imported wheat.

While this Government appreciates the reasons which impel the Government of Peru to seek to obtain its wheat import requirements from the United States, it is regretted that the many demands upon the United States for shipments to low consumption areas and the limitations of United States export availability do not permit this Government to declare itself the main source for wheat for Peru. As a member of the International Emergency Food Council, in which Peru also has membership, the United States is guided by the recommendations concerning world grain distribution which are developed in that body. It is also the policy of the United States, dictated by the emergency world grain supply situation, not to make actual commitments for export of grain beyond announced allocations.

The demand now placed upon United States grain export availabilities is greater than ever before. In his report of October 27, 1947, [Page 1044] the Secretary-General of the International Emergency Food Council stated that, because of reduced cereal production in Europe, world imports of cereals would have to be six or seven million tons greater than last year just to maintain last year’s Spartan bread rations and a restricted level of livestock feeding for 1947–48. Under the circumstances it is imperative that all sources of wheat supply be utilized to the utmost. The International Emergency Food Council has consistently urged that those nations who have traditionally obtained their wheat requirements from non-member states such as Argentina continue to fill their needs in so far as possible through imports from those sources. Many of the nations of Europe as well as countries in the Western Hempisphere have been securing grain supplies from Argentina as indicated by International Emergency Food Council recommendations.

In the spirit of inter-American collaboration this Government has in the past shipped quantities of wheat and wheat flour to Peru to meet urgent needs not supplied from other sources. You may be assured that the United States will be pleased, within International Emergency Food Council recommendations, to assist on an emergency basis with shipments of wheat or flour to Peru if such supplies are not available from Argentina or other sources.

Accept [etc.]

For the Acting Secretary of State:
Norman Armour
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