File No. 835.6131/39
The Ambassador in Argentina ( Stimson) to the Secretary of State
[Received 11.07 p.m.]
My December 26, 3 p.m.1 British Minister has just given me a copy of a convention determined in conversation last evening between him and the French Minister on the one side and the Minister for Foreign Affairs on the other. As will be noted the parties named in the convention are only Great Britain, France, and Argentina, but Article 6 is substantially the same as Article 4 in the triplicate memorandum quoted in my November 22, 1 p.m.,1 that is to say Article 6 reads—
The Governments of the United States, France, and Great Britain when they provide the ships necessary for the exportation of the mentioned products (that is to say the wheat, etc., from Argentina) will permit the exportation of the combustible which is necessary for Argentine internal consumption.
I would call the Department’s attention to the dangerous latitude in this clause, inasmuch as it is not definitely specified whether the amounts of the combustible, id est, oil and coal, referred to is limited by the capacity of the wheat ships or whether the amount of the [same] shall be determined by the total internal needs of Argentina.
[Page 396]The convention requires the consent of Department of Justice, but the Minister for Foreign Affairs assured British Minister that he could get this consent next Monday if an answer could be received from the Allies’ Governments by that time.
A full translation of the entire convention follows:
Between the Government of the Argentine Republic and the Governments of Great Britain and France it has been agreed to celebrate the following convention.
Article 1. The Governments of France and Great Britain will buy in the Argentine Republic the surplus of wheat and other cereals for the approximate quantity of 2,500,000 tons, having to export the same before November 1, 1918. They agree to pay a minimum price of 12 ₱ 50 per 50 kilograms of wheat; 7 ₱ per [100] kilograms oats; and 15 ₱ per 100 kilograms of linseed, all of good quality f. o. b.
Article 2. The Governments of France and Great Britain shall not be obliged to buy the cereals before mentioned when their price in the market exceeds 15 ₱ per 100 kilograms of wheat, 7 ₱ per 100 kilograms oats, and 15 ₱ per 100 kilograms linseed.
Article 3. The Argentine Government shall open a credit in favor of the Government of Great Britain up to the sum of 100,000,000 ₱ Argentine gold equivalent in lawful money and an equal credit up to the same sum to the Government of France.
The amounts drawn on such credits shall bear 5 per cent interest per annum.
Article 4. The Argentine Government shall be permitted to draw on the Governments of France and Great Britain up to the total of the sums of which they had disposed under the above credits when the rate of exchange in favor of the Argentine Government does not exceed 50 pennies upon England and 5 fr. 60 upon Paris.
The resulting balance shall be liquidated by the Governments of France and Great Britain within the period of 24 months from the signature of this convention, unless further extended by mutual consent by delivery of the amount in actual gold.
The Governments of France and Great Britain shall deposit in the respective Argentine Legations obligations equivalent to the amounts of the sums of which they shall have disposed under the credits granted.
Article 5. The credits granted shall be utilized for the purchase of Argentine cereals and can also be used for the acquisition of other products of the country.
Article 6. The Governments of the United States, France, and Great Britain in providing the necessary ships for the exportation of the products mentioned shall permit the exportation of combustible which is required by the internal consumption of Argentina.
Article 7. This convention is ad referendum for the Argentine Government, which shall obtain the necessary authorization from the National Congress.
I desire to call the Department’s attention to the importance of instructing me immediately as to whether it wishes me to signify the approval of the Government of the United States of this convention; [Page 397] as otherwise, when the convention is submitted to Congress on Monday the fact that the United States has not expressed disapproval may be interpreted as a demonstration of approval.