835.34/405: Telegram

The Ambassador in Argentina (Jay) to the Secretary of State

39. Press announces President by Cabinet resolution has directed the expenditure of 32,000,000 gold pesos for construction of two cruisers, three submarines, two destroyers and two gunboats. Funds apparently to be taken from unexpended balance alleged to have been left over after purchase of naval units appropriated for in 1909. Constitutionality of President’s authorizing this and other large expenditures without approval of Congress now in recess is seriously questioned. Naval attaché is following developments closely and will continue to keep Navy Department informed. Representative of Fore River Shipbuilding Corporation arrived here recently on this matter and will continue to receive all proper assistance from Embassy.