835.51/899: Telegram
The Ambassador in Argentina ( Bliss ) to the Secretary of State
[Received 7:55 p.m.]
30. My 29, March 31, 5 p.m. Your 18, April 1, 3 p.m. It should be borne in mind that opinion here is not unanimous that Roca Mission will not be able to reach agreement. The amount of the loan and period of repayment also appear to be subject to modification.
Estimates of arrears of British blocked pesos vary from 130 to 150 million paper pesos. The object of the loan is to cover these arrears. How exactly this result will be achieved remains to be seen if and when settlement reached.
Moreover, it is not this phase of operation that would be prejudicial to us but the projected allotment for the future of a fixed percentage of exchange for British interests when the total amount available this year is so far, and is expected to continue to be, considerably less than last year. One effect of this would be that the exchange needs of the British importers would be far more nearly met than those of their competitors.
In connection with the granting of foreign exchange to United States interests, informed that reports of disposition on the part of the United States to negotiate reciprocity treaties are having beneficial effect.