835.51/900: Telegram
The Ambassador in Argentina (Bliss) to the Secretary of State
[Received 6:11 p.m.]
32. Your 19, April 7, 5 p.m. British imports into Argentine for the years 1926 to 1930 inclusive (the latest years for which figures available for comparison) represent less than 22 percent of the total. There has not, however, been any notion here of basing exchange on imports.
An allotment of 34 to 35 percent to British interests would correspond to percentage of British imports from Argentine according to provisional official figures for the year 1932. It has been impossible to obtain reliable estimate amount of remittances from British investments. Same reliable sources of information on which amount of British blocked pesos based now consider 120 to 130 millions likely [Page 726] figure. Impossible ascertain accurate estimate. Not enough known of terms of proposed loan to say whether British exchange allotment would cover its interest service, but probably it would charge no amortization for several years.
If percentage of exports were taken as criterion for allotment of exchange according to national interests then on the basis of 1932 figures above referred to United States would come after Holland, Belgium, France, Germany and Italy with 3.4 percent. While it is reported that Control Commission increasingly favors awarding exchange in amounts corresponding to exports, there is also possibility that Argentine Government is disposed to make special reservations with British with a view to facilitation payment of its dollar debt service.
American banking interests here consulted since sending my number 29, March 30 [31], 5 p.m., express doubt American firms would accept loan arrangement similar to suggested British one to release American held pesos as long as existing Argentine bonds are quoted in United States far below par. Possibly some different arrangement might subsequently be worked out but it is unlikely that any proposition would be given serious consideration by this Government until London negotiations terminate.