The Secretary of State to the Embassy in Brazil
76. Your suggestion that you not at this time approach President Dutra on oil legislation approved view considerations advanced urtel 83 Jan 26. However Dept hopes consultation with Braz authorities on possible objectionable features of bill will be possible before presentation to Braz Congress.
Oil supplies are critically short in this country and there is rising popular demand for steps to remedy situation. House Commerce Committee yesterday recommended embargo on all oil exports from US and use of all American flag tankers only for discharge at US ports. Principally because of tanker shortage oil shipments to all European and South American countries by American companies from non-US sources have been drastically cut. Brazil is not being discriminated against. On contrary receiving better treatment than many other countries. Factor is that Braz oil requirements have increased materially. You should make these facts clear in conversations to correct misapprehensions indicated pgh 6 urtel.1
Re pgh 8 Jersey informs Dept that 387,000 barrels fuel oil were loaded for Braz Jan 1948 as compared with Jan 1947 shipments of 359,000 barrels and indicated demand 377,000 barrels. Shipments in Dec were low but totals for two months were approx 75 percent of demand. These figures should be checked with local Standard office but should dispose of allegations that supply situation being utilized to exert pressure. In view tanker shortage it is probable deliveries 1948 can only approximate deliveries 1947.
- Paragraph 6 of telegram 83, supra.↩