The Chargé in Argentina (Cable) to the Secretary of State
[Received 8:20 p.m.]
38. Embassy’s telegram No. 27, dated March 10. Although no contracts have been signed up to the present time, yet it may be stated with confidence that Italy will secure the light cruisers and England the sloops and flotilla leaders. It is said that the French Government will construct the submarines. I have pointed out to the Under Secretary that if such should be the case, it would be contrary to the report of the naval board which recommended the Holland type submarines.
The Electric Boat Company representative informs me that his company is in a position to construct vessels under its own patents in French yards. This may be the Argentine Government’s plan, since it would satisfy President Alvear’s desire for France to have part of the construction program and it would eliminate the accusation that the United States is being discriminated against.
I have been informed that the Government of Argentina has requested tenders for a loan of $15,000,000 in New York and London. Such an amount would cover the units of the present program. The London terms will be accepted if they should be practically as favorable as those of New York.