611.3531/234
Memorandum by Mr. Harry Hawkins, of the Treaty Division, of a Conversation Between the Assistant Secretary of State (Sayre) and the Argentine Ambassador (Espil)
Mr. Sayre referred to the Argentine Embassy’s memorandum of October 5 to which the Ambassador had so long been awaiting a reply and stated that he desired to explain frankly and confidentially [Page 683] to the Ambassador just how matters stand. He said that the Ambassador would of course realize the difficulty of the problem from the standpoint of this Government in view of the agricultural situation in this country. He thought something could eventually be put through but that the matter was of such importance that it seemed necessary to discuss it with the President. Accordingly, a draft reply to the Argentine Ambassador’s note of October 5 was discussed with the President. The President is anxious that something substantial be done to promote commerce with Argentina, but feels that because of the serious political difficulties involved premature action would defeat the ends in view. The President therefore has suggested that there be further exploration of the subject and that there should be some consultation with leaders in Congress in order carefully to prepare the way for the agreement before going ahead with it.
Mr. Sayre stated that he would like to see a real treaty under which real concessions would be granted by each country, and not a mere “shadow” treaty. The way to get a real treaty is to proceed slowly and carefully.
The Ambassador said that he shared fully Mr. Sayre’s desire for a real and not a “shadow” treaty. He indicated that he had given some thought to the political problem which the proposed agreement presents from the standpoint of this Government and that he fully understood this Government’s position. Without definitely saying so he gave the impression that he thought it would be wise to proceed slowly and cautiously. The Ambassador suggested that perhaps Congress might give the Executive authorization to lower duties by executive agreement. He thought that this would greatly facilitate matters. Mr. Sayre, without indicating that there were any definite plans for obtaining executive authority, said that he hoped some development of this kind might take place.