Foreign Relations of the United States, 1948, The Western Hemisphere, Volume IX

832.6363/2–648: Telegram

The Secretary of State to the Embassy in Brazil

us urgent

Washington, February 6, 1948.

109. Following from Commerce: Adverse weather conditions and abnormally low stocks have aggravated critical shortages of all petroleum heating fuels throughout large areas of the United States.

The seriousness of these shortages has led the Department of Commerce to reduce first quarter export allocations, effective January 30, 1948, as follows:

(Unit—Barrels)
Schedule B Number	Description	Original Quota	Revised Quota
501700	Other Motor Gasoline	5,250,000	4,550,000
502700	Kerosene	900,000	600,000
503000	Gas Oil and Distillate Fuel Oil	3,200,000	2,800,000
503100	Residual Fuel Oil	1,800,000	1,000,000

In addition, the separate quota of 1,600,000 barrels of gas oil and distillate fuel oil, established for Japan and Ryukyus, has been reduced to 100,000 barrels [sic].

The revision of first quarter export allocations has not resulted in reductions of the original country allocation to Brazil. Concern is increasing over diminishing U.S. stocks of all allocated petroleum and petroleum products. The course of events may necessitate further reductions of all export allocations.

In the light of the revised first quarter allocations and continuing critical U.S. shortages of petroleum heating oils and aviation gasoline and motor gasoline, the Mission is requested to consult immediately with representatives of the Brazilian Government to determine what reductions in the first quarter petroleum allocations to Brazil can be achieved without probable serious economic disruption. Information urgently required as to detail of essential end uses of petroleum from U.S. in Brazil and the effect on the economy of possible reductions.

It is urgent that OIT receive your reply not later than Wednesday, February 11, 1948.

Marshall