835.34/451: Telegram

The Chargé in Argentina (Cable) to the Secretary of State

70. Department’s telegram 26, July 28, 5 p.m. After a consultation with Ribero, had interview with Under Secretary of State for Foreign Affairs stressing Department interest and informed him at Ribero’s suggestion that Electric Boat Company fully capable of completing contract. He stated that he would inquire into the matter and communicate with me informally. So far no reply received.

[Page 434]

[Paraphrase.] Yesterday I was informed … that it was practically decided to award the contract to an Italian company of Taranto which is operated by Germans. This company constructs double-hulled ships of the same type as the Holland and considered by some to be superior. A report which was submitted by Lieutenant Commander Teisaire of the Naval Mission in Europe, who received his original submarine instruction at the Electric Boat Company’s plant, that this type was preferable for their purposes, has caused the board of Admirals to reverse their original decision. … As yet the contracts have not been let. [End paraphrase.]