File No. 635.119/220
The Ambassador in Argentina ( Stimson) to the Secretary of State
[Received 5.30 p.m.]
Stabler from Robbins:
Your March 1, 1 [3] p.m. I have just seen Naón, but have made no comment to him concerning instructions from the Department. He seems somewhat hurt at what he terms “lack of action” on the part of the Department. I said that I expected a reply shortly; in the meantime would like to send a telegram defining more clearly the method by which “commercial and economic” ties between Argentina and the United States would be consolidated in a more permanent way. He replied that there were many ways, for example: (1) the opening by Argentina of an unlimited credit in favor of the Allied Powers to be used for possible future purchases in this country by those Powers; (2) the expropriation (not sequestration) of the Compañía Alemana de Electricidad by the Argentine Government; (3) the allotment of German tonnage interned in Argentine ports to the Allies. I definitely suggested that I should cable these proposals to the Department and he as definitely refused his “authorization” saying that this was not the moment for such proposals; that the object he desired was to create a political tone which he confessed he did not believe at present existed and that he thought the discussion of proposals by both sides should come subsequently.
I am inclined to believe that Naón’s attitude as to the possibility of forcing Argentina into making a definite break with Germany has changed and that he is now of the opinion, as I have before stated, that there is no immediate cause for a rupture.
In view of the fact that Naón is to see the President on Monday at 3 I beg to suggest the desirability of giving him some form of answer before that time.