Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

202. Memorandum by the Assistant Secretary of State for Inter-American Affairs (Holland)¹

Washington, December 12, 1955.

SUBJECT

• Note on Problems in Countries Visited

Argentina

1. Export Import Activities—The government accords top priority to its application for a loan to expand the steel mill. It would like to change the underlying expansion program in order to contemplate acquisition of all the necessary equipment in the United States. The Bank replied that this would make necessary a complete review of the application. The Government obviously did not want that, and agreed to commit itself to the existing program unless some change therein were approved by the Export-Import Bank.

Dr. Prebisch stated firmly that the Government was determined not to incur dollar obligations in excess of its ability to support them.

2. General United States Assistance to the New Government—It was agreed that we would send to Argentina one or more technicians to check the figures on economic conditions and government programs with representatives of the Cabinet. Thereafter, Argentina would send a group of well prepared technicians to the United States to outline here the Argentine Government’s program for economic rehabilitation and the assistance that they would like to receive from the United States.

3. Request for Arms—It was discovered that while the Navy urgently wants to purchase additional arms from the United States, the President who speaks for the Army opposes these applications. Conversations on this subject are separately reported.²

4. ICA Activities—The Government expressed strong interest in obtaining ICA programs, particularly in the field of agriculture and ranching. It is also interested in exchange of persons.

5. Argentine Participation in the International Bank and the International Monetary Fund—Representatives of Argentina said that the Government has under active consideration participation in the IBRD and the IMF and that it will probably join these two organizations.

6. Communism—The President of Argentina said that it was his intention to seek an early opportunity for Argentina to ratify the Caracas Resolution. He expressed a desire for United States assistance in intensifying Argentina’s anti-Communist activities. This conversation has been separately reported.³

1. Source: Department of State, Central Files, 110.15–HO/12–1255. Secret. Copies sent to Waugh, Atwood, Douglass, Harley, Corbett, and Bernbaum.
2. Apparently a reference to despatch 437 from Buenos Aires, supra.
3. Ibid.