ARGENTINE WHEAT EXPORTATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A000200270004-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: December 14, 2016
• Document Release Date: April 12, 2001
• Sequence Number: 4
• Publication Date: February 16, 1953
• Content Type: REPORT

Approved For Release 2001/11/07 : CIA-RDP80-0081OA000200270004-6
C.E.NTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
This Document contains Information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.B. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form Is prohibited.
COUNTRY Argentina REPORT NO. 25X1A
NO. OF PAGES 1
REQUIREMENT NO. RD
25X1A 25X1A
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. The Ministry of Finance and the Ministry of Industry and Commerce have
been discussing the conditions which will govern exportation of the present
Argentine wheat crop. As of 10 January 1953 these ministries had not come
to an agreement on the type of exchange which must be applied to export
transactions. The Ministry of Industry and Commerce considered it essential
to increase the exchang rate from five to ten Argentine pesos to the dollar.
The Ministry's reasoning was that the cost of production of a ton of wheat is
550 pesos in the field and 750 pesos delivered to the port grain elevators,
an amount equal to US $140.00 (sic) per ton, F.O.B., which is considerably
above the world market. price. On the other hand,. the Ministry of Finance was
opposed to an increase in the exchange rate, which it considers inflationary,
and it felt that such an increase would provoke a rise in the cost of living.
In_ place of an increase, the Ministry of Finance favored subsidizing the
farmers.
2. It appeared that these discussions would continue until early February, when
..the International Wheat Agreement conference in Washington would be ended.
In the meantime, no exportations would be made, in the hope that the new
'`administration in the United States might lower or eliminate theriieat subsidy,
leaving Argentina in a more favorable competitive position. All shipments of
wheat from Argentina have been stopped, except for commitments from the pre-
vious quota to India and France. Outstanding obligations to other countries
are 360,000 tons for Japan and 700,000 tons for Brazil,
3, The Argentine Government appears to prefer to handle wheat negotiations with
Peru through normal commercial channels rather than to deal directly with the
Peruvian Government. This preference has been attributed to a recent deteri-
oration of relations between Argentina and Peru, largely the to Argentine
intervention in Peruvian labor matters, on the one hand, and attacks by the
Lima newspaper, La Prensa, against President PERON and his regime, on the other.
CONFIDENTIAL
Argentine Wheat Exportation DATE DISTR. 16 February 1953
(Net.: Washington DiNrihWioRplproveJy aP'Ffel'ga%L'iblltfdhhl'i '): CIA-RDP80-0081OA000200270004-6