Oil Deal

The U.S. State Department's decision to allot 500,000 tons of petroleum to Argentina was no oil on troubled Pan-American waters.

The thought of sleek Argentines purring over the pampas at a prewar clip while U.S. motorists were rationed and Brazilians burned charcoal sparked a widespread resentment. The Washington Post called the deal "snubbing our friends and favoring our enemies."

Acting Secretary of State Joseph C. Grew last week explained the oil deal: 1) the petroleum shipments were in exchange for vegetable oils, which Argentines are now using as fuel; 2) 80% of the petroleum would be transported in Argentine tankers.

Cried one U.S. diplomat: "Sure, Argentina has the ships. Why the hell shouldn't she have? . . . Masters of the Argentine vessels carried safe-conduct papers issued by the German Navy. . . . Brazilian ships plied the same waters carrying critical war materials and 32 of the best ships flying the Brazilian flag were sent to the bottom."

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