825.2311/11–2754
Memorandum by the Director of the Foreign Operations Administration (Stassen) to the Secretary of State
Subject:
- Chile Wheat Emergency
In August of 1954, FOA submitted Chile to the Department of Agriculture for priority consideration in Public Law 4801 because of our appraisal that there would be a serious food need in that country.
Thus far, the Department of State has not concurred in the urgency of the need, and Assistant Secretary Holland specifically requested that [Page 755] all Public Law 480 programs be postponed until after the Rio Conference.
State Department cable No. 176 of November 22nd from the United States Ambassador in Santiago and Tousfo 148 of November 24th2 from our Mission Chief in Santiago both indicate an extremely critical situation reflecting the possibility of a bread shortage within the next few weeks.
A CIA evaluation has also indicated a critical situation.
Therefore, I respectfully suggest further consideration by the Department of State of its position. If authorized, FOA could proceed with some early emergency wheat shipments, pending a decision on the total Public Law 480 program for Chile.3
- Reference is to the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480), approved July 10, 1954; for text, see 68 Stat. 454.↩
- Neither printed (825.2311/11–2754).↩
- A letter to Mr. Stassen by Secretary Dulles, drafted by William Belton of the Office of South American Affairs, with the assistance of Mr. Atwood, dated Jan. 7, 1955, reads in part as follows: “a Public Law 480 program for Chile, involving wheat and cottonseed oil, has been agreed upon within this Government, and instructions have gone forward to our Ambassador in Santiago to initiate negotiations with the Chilean authorities. In the meantime, the Department is exploring the possibility of meeting a Chilean Government request to expedite the shipment of 4,500 tons of cottonseed oil under the proposed agreement prior to completion of negotiations.” (825.2311/1–755)↩