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

242. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State¹

Buenos Aires, October 8, 1957—1 p.m.

603. Foreign Minister called me yesterday to ask support for Coll Benegas’ request for new $150 million credit as contained in Ministry of Finance aide-mémoire dated August 22 which was handed to Waugh during Buenos Aires Economic Conference.²

Minister said Coll reported Export-Import Bank favorable to loan but State Department withholding approval because interested only in loans to crisis areas and not in loans to Latin America. Nevertheless part of loan assured including transportation equipment and industrial machinery.

He said Export-Import Bank wants to send another mission to Argentina to discuss remainder of loan request but process of sending missions could go on indefinitely without result and Argentine Government badly needs to give people some “sensation of relief” in very difficult economic and political situation now existing.

Minister referred to Peronista activity within Argentina and in neighboring countries, to Argentina’s importance to the hemisphere and interest of US Government in stable Argentina. He asked that favorable consideration be given to new loan on a frankly political basis.

I told Minister I could assure him both State Department and Export-Import Bank very much interested in Latin America and referred to recent bank record. I said what bank sought was good projects and that for more than a year I had repeatedly urged Argentine Government to fulfill promise which Coll Benegas had made with President’s authorization on his first mission to Washington to settle packers and ANSEC case in order to place our government in position to extend further credits to Argentina. I said I was encouraged by very substantial progress in meat packers’ case and still hoped for similar progress in ANSEC case. I referred to conversations between Yadarola³ and American and Foreign Power but said had impression no progress so far.

Minister said Ministries of Finance and Industry continue urge settlement of ANSEC case but there is opposition within Cabinet principally from Minister of Justice who is lawyer and objects on technical grounds.

I asked Minister whether he thought constituent assembly draft amendments to constitution might be interfering with Argentine credit board. He replied “tremendously” and expressed hope assembly would shortly adjourn for lack of quorum without enacting amendments.

(Reference: Embtel 602).⁴

I told Minister I would convey his message to Department.⁵

Beaulac

1. Source: Department of State, Central Files, 835.10/10–857. Confidential; Niact.

2. In this aide-mémoire the Argentine Government asked for Export-Import Bank loans totaling $150 million, including $60 million for railroads, $23 million for the Rio Turbio coal mines, $6 million for sanitary works, and $60 million for the private sector. The aide-mémoire was transmitted to the Department in despatch 282 from Buenos Aires, August 28. (Ibid., 835.10/8–2857)

   After the conclusion of the Buenos Aires Conference, Coll Benegas went to Washington to explain the Argentine position regarding new U.S. loans. Telegram 604 to Buenos Aires, October 4, reported that Coll Benegas, in conversations with officials at the Departments of the Treasury and State and the Export-Import Bank, “has stressed need for additional U.S. gesture toward Argentina to help bolster Prov Govt next few months.” (Ibid., 835.10/10–457)

3. Mauricio Luis Yadarola, Argentine Ambassador to the United States.
4. Dated October 8. (Department of State, Central Files, 735.00/10–857)
5. Beaulac transmitted a more detailed memorandum of this conversation to the Department in despatch 501 from Buenos Aires, October 8. (Ibid., 835.10/10–857)