178. Editorial Note
Assistant Secretary of State for Inter-American Affairs Holland visited Argentina December 4–8, 1954, to discuss with Argentine President Juan Domingo Perón the general state of United States–Argentine relations. In two separate conversations they considered, among other matters, the question of profit remittances for American-owned business firms in Argentina; see Foreign Relations, 1952–1954, volume IV, page 481.
On January 19, 1955, the Argentine Government issued Decree 637, which permitted foreign-owned mining and industrial enterprises to remit profits, if earned after August 23, 1953, up to 8 percent a year on their invested capital. The decree in effect granted retroactive application of Law No. 14222, the Law on Foreign Capital Investment, enacted on August 23, 1954, to capital investments antedating that legislation.
In telegram 397 from Buenos Aires, January 20, Ambassador Nufer informed the Department of State that the provisions of the decree were “extremely disappointing. About half American companies here not engaged in manufacturing or mining,” the telegram read in part. “Furthermore, provision that all past remittances above five percent will count as repatriated original capital will reportedly deprive all but few old established American companies of any capital base whatsoever and preclude any future remittances.” Nufer proposed that, unless the Department instructed him otherwise, he would seek an interview with Perón the following week and point out to him that the decree, as worded, “falls far short of what we expected as [a] result [of] Mr. Holland’s conversation with him; that it not only affords little if any relief to old established American capital but in fact in many instances precludes future remittance.” (Department of State, Central Files, 811.05135/1–2055) The Embassy transmitted the text of Decree 637 to the Department in despatch 647 from Buenos Aires, January 21. (Ibid., 800.05135/1–2155)