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DECLASSIFIED
E. O. 11652, Sec. 3(E) and 5(D) or (ii)
Dept. of State letter, Aug. 9, 1973
**NATIONAL
ARCHIVES AND
RECORDS
-3-
By NLT- He , NARS Date 9-8-76
SERVICE"
probably be possible to get on without the importation
of wheat from Argentina, but he pointed out that to
maintain present rations or better it would necessitate
purchase of wheat and corn. He also emphasized that
there is an acute shortage of fats and oils". Mr. Strange
of ECA stated on June 8 that contemplated purchases in
Argentina during July, August, and September would prob-
ably amount to only $74,000,000. ECA officials finally
advised the Department on June 11 that virtually no off-
shore purchasing in Argentina would be required during
the third quarter and that offshore purchasing during
the following six months would be at minimum levels and
on the basis of declining prices and only on extremely
favorable terms. They stated that ECA was unwilling to
accept a world price formula for Argentine exports. On
the same day an ECA official, Mr. Struve Hensel, who was
about to depart for Buenos Aires, advised the Embassy at
Buenos Aires that, in view of the requirements in Argen-
tina, he doubted that he would negotiate with Argentine.
officials for any purchase of any commodities at that
time. Thus within a week ERP requirements in Argentina
for six months to a year were estimated to have dwindled
to practically nothing.
5. Unknown to the Department, Mr. Hensel took with
him to Buenos Aires a memorandum prepared in ECA on
June 15, 1948. This memorandum outlined an offshore
procurement program whereby ECA might meet "distress
situations" in Europe without buying from Argentina.
The memorandum ignored the Argentine commitment to sell
for dollars at US prices or world market prices. The
memorandum
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"ocrText": "DECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or (ii)\nDept. of State letter, Aug. 9, 1973\n**NATIONAL\nARCHIVES AND\nRECORDS\n-3-\nBy NLT- He , NARS Date 9-8-76\nSERVICE\"\nprobably be possible to get on without the importation\nof wheat from Argentina, but he pointed out that to\nmaintain present rations or better it would necessitate\npurchase of wheat and corn. He also emphasized that\nthere is an acute shortage of fats and oils\". Mr. Strange\nof ECA stated on June 8 that contemplated purchases in\nArgentina during July, August, and September would prob-\nably amount to only $74,000,000. ECA officials finally\nadvised the Department on June 11 that virtually no off-\nshore purchasing in Argentina would be required during\nthe third quarter and that offshore purchasing during\nthe following six months would be at minimum levels and\non the basis of declining prices and only on extremely\nfavorable terms. They stated that ECA was unwilling to\naccept a world price formula for Argentine exports. On\nthe same day an ECA official, Mr. Struve Hensel, who was\nabout to depart for Buenos Aires, advised the Embassy at\nBuenos Aires that, in view of the requirements in Argen-\ntina, he doubted that he would negotiate with Argentine.\nofficials for any purchase of any commodities at that\ntime. Thus within a week ERP requirements in Argentina\nfor six months to a year were estimated to have dwindled\nto practically nothing.\n5. Unknown to the Department, Mr. Hensel took with\nhim to Buenos Aires a memorandum prepared in ECA on\nJune 15, 1948. This memorandum outlined an offshore\nprocurement program whereby ECA might meet \"distress\nsituations\" in Europe without buying from Argentina.\nThe memorandum ignored the Argentine commitment to sell\nfor dollars at US prices or world market prices. The\nmemorandum"
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