835.5151/221: Telegram
The Chargé in Argentina (Greene) to the Acting Secretary of State
[Received 5:15 p.m.]
118. Minister of Finance last night issued a decree providing further new regulations for exchange control. The decree states that an opportunity has arrived to permit the peso to find its own level but to prevent fluctuation and speculative retention of exchange the selling rate for exporter’s bills must be temporarily stabilized. Accordingly beginning today exchange in excess of 1,000 pesos will be sold to the highest bidder amongst applicants with permits already granted. Other remittances up to 1,000 pesos will be liquidated at average rate for the day fixed by the Control Committee. A second decree effective today creates a grain regulating board with powers to purchase wheat, corn and linseed at basic prices, such basic prices established approximately 20 percent above those previously ruling and to sell such commodities to exporters at international market prices. To cover the difference the Board will draw on a special fund provided for in the decree first referred to into which will be paid the difference between the purchase and sale rates of exchange for operations in foreign currency. No exchange rates quoted today. Despatch follows.31
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