835.5151/130: Telegram
The Acting Secretary of State to the Chargé in Argentina (White)
44. Substance of Department’s telegram No. 3020 and non-confidential portion of No. 3721 to you were repeated to American delegation to the Economic Conference in London. On June 19 delegation cabled22 that the Argentine Ambassador had inquired whether the American Government could agree to suspend discussion of the Argentine-British Treaty until after the conclusion of conference. The delegation inquired how the treaty was being applied, what exchange discriminations were enforced against American trade, and requested the Department’s suggestions. On June 21, Department in a cable22 referred to the action indicated in the first sentence above, transmitted in substance the confidential portion of telegram No. 37 to you and then stated as follows:
“The Consul General in Buenos Aires has reported on several occasions that according to information obtained from trustworthy banking sources the Argentine Exchange Control Commission is embarking on a policy of allocating exchange permits to British petitioners in accordance with the pertinent provisions of the Anglo-Argentine Treaty. The effect of such a policy is to withdraw amounts of exchange previously available for remittance to countries other than Great Britain.
“The Department considers that the representations it has made to the Argentine Government are sufficient for the present. It will continue to observe the policy of the Argentine officials with a view to deciding whether further representations might be advisable. The Department, however, could not consent to refrain from any further discussions of the Argentine-British Treaty should future developments render such representations desirable.
“It is suggested that in discussing this matter with the Argentine representatives you could point out that a practical method of achieving a suspension of further discussion of the Anglo-Argentine treaty until after the Conference would be for the Argentine Government to take steps to alleviate the present unfavorable position of American interests as regards the allocation of exchange.”
The following confidential telegram has been received from the delegation with instructions to repeat to you:
“Le Breton was informed today that in view of our understanding that under the treaty with the British Government the Argentine Government was even now administering the exchange control to the detriment of American trade the American Government could not modify its position. The American Ambassador at Buenos Aires had entered a formal protest and would have to be instructed to stand by that protest and endeavor to induce the Argentine authorities to modify or suspend discriminatory practice.
“Le Breton was told, however, that during the period of the Conference the United States would take no action of any other character. He is cabling this to his Government.”
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