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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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