The Chargé in Brazil ( Key ) to the Secretary of State
128. For Commerce. Deptel 109. February 6. Holidays preclude consultation representatives Brazilian Government, as result material cuts shipping petroleum products already in short supply. Situation is such that Embassy feels strongly it should not be further aggravated this time by reductions first quarter allocation. All petroleum products being rationed unofficially except fuel oil which has been subject official rationing since December. Anticipate official rationing will be extended near future all products.
US supplies used largely motor transportation which already adversely affected by petroleum shortage. Reduction allocations also likely to provoke unfavorable reaction in connection with petroleum legislation about to be submitted Congress.