365/12–154: Telegram
The Acting Chairman of the United States Delegation (Hoover)1 to the Secretary of State
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Secun 6. For the Secretary. Progress at Rio conference continues favorable.2 Comment on US policies by majority Latin American delegations stresses particularly our cooperative and sympathetic approach to their problems. As we come to closing days of meeting, atmosphere is friendly, appreciative of our position, and has definitely improved throughout conference. We are fully aware of critical situations in Chile and Brazil, as outlined by Stassen at OCB, and have explored problems in detail with respective Finance Ministers.3 I believe imperative we assure these Ministers, while we are all in Rio, we immediately prepared to negotiate terms for sale of wheat (and possibly other commodities) under PL 480. We have in mind 250,000 tons wheat to Brazil and 50,000 to 100,000 tons wheat plus edible oils to Chile for balance fiscal year 1955.
Discussions this problem have been going within USDel throughout past week, but FOA and Agriculture representatives have raised technical objections to proposed approach by State, citing numerous difficulties4 which may arise in negotiations pursuant to PL 480.
Notwithstanding above objections, I believe situation sufficiently critical that we are justified in giving general assurances at once, stating clearly problems inherent in PL 480, and getting detailed negotiations underway immediately.
Holland and Department staff in full agreement and believe immediate action necessary.
Ambassador Kemper and Embassy staff concur regarding Brazilian situation, and cables from Ambassador Beaulac indicate strong concurrence [Page 362] Santiago. Secretary Humphrey gave approval before his departure from Rio.
Would appreciate your approval by telephone or cable this afternoon.
- Under Secretary Hoover became Acting Chairman of the U.S. Delegation upon the departure of Secretary Humphrey from Quitandinha on Nov. 26, 1954.↩
- In telegram Secun 4, from Quitandinha, dated Nov. 29, 1954, reporting on the situation at the end of the first full week of the conference for Secretary Dulles and Secretary Humphrey, Mr. Hoover stated in part that “As a result of committee sessions of past week, supplemented by private discussions with virtually all delegations, I am more than ever convinced of inherent soundness of United States policy on major points”. He further commented that on certain issues, including the “more radical recommendations of the UN ECLA report, we will undoubtedly have to register sole abstention, rather than seriously compromise our principles in an effort to reach unanimity.” (365/11–2954)↩
- Records of discussions held by Mr. Humphrey and Mr. Hoover with heads of the Latin American delegations are contained in Conference files, lot 59 D 95, CF 411A and OAS files, lot 60 D 665, “Bilateral Talks”.↩
- In telegram 53, from Quitandinha, dated Dec. 1, 1954, addressed “eyes only” to Mr. Stassen, Mr. FitzGerald recommended that before final action was taken on the proposed Brazilian and Chilean programs under PL 480, the United States should resolve questions such as those pertaining to the use of local currency proceeds and the exchange rates at which the local currency price of the commodities would be calculated. (365/12–154)↩