625.3531/36

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

No. 2073

Sir: Referring to the Embassy’s despatch No. 2021 of March 31,77 entitled “New Argentine-Chilean Commercial Treaty”, I have the honor to report that, a special Chilean mission having arrived in Buenos Aires, the modus vivendi which was originally signed on [Page 712] November 12, 1932 between the Argentine Republic and Chile, has been renewed, as modified on February 2, 1933, for the space of sixty days. It will be noted that this renewal is to permit the ratification of a new commercial treaty at present under study and of which it is hoped that the draft will be ready by the middle of next week.

I am informed at the Foreign Office that considerable difficulty was encountered at one time by reason of the refusal of the Chilean Government to reduce the duty on Argentine flour. A special provision has been inserted in Article II, Clause B, covering this point.

It will also be noted that in Article II, fresh apples are eliminated from the rebates accorded under the modus vivendi. I enquired of the Under-Secretary as to the reason for the special mention of apples, but the only answer I received was to the effect that this was to protect Argentine production. If so, however, it will be seen that other fruits should also be mentioned, but possibly, the season for grapes being well advanced, apples may have been the principal consideration during the period in which the modus vivendi is to run.

Respectfully yours,

J. C. White
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