835.51/943: Telegram

The Ambassador in Argentina (Weddell) to the Secretary of State

88. Following is text of pertinent portion of telegram drafted at meeting of over 30 American firms convoked by Bank of Boston in response to suggestion of Minister of Finance and forwarded to home offices and Council of Inter-American Relations.

“Reliably reported the supplementary tariff agreement concluded.36 Supplementary sterling loan agreement concluded except rate of conversion not yet determined which will remove approximately 130 million paper pesos from blocked funds. A broad general financial plan of Minister of Finance calls for removal blocked peso balances all other nationalities under similar arrangements. Belgium and French have pledged themselves to similar conversion to extent of 70 million paper pesos. Minister of Finance, wishing to do same operation American blocked funds, yesterday asked First National Bank of Boston call meeting more interested American firms here [Page 760]and submit proposal conversion American blocked balances into 4–percent 20–year dollar bonds, no amortization during first 5 years, thereafter 5 percent cumulative annual amortization issuance at par which terms identical to British loan. No better terms including conversion rate can be offered by Minister as Roca Treaty allows no better treatment other nationalities. Conversion rate pesos into dollars cannot be definitely determined at present owing violent exchange fluctuations and uncertainty as to percentage of American firms who will accept.”

Repeat to Commerce.

Weddell
  1. One of the agreements supplementary to the Anglo-Argentine (Roca) Agreement of May 1, 1933. See pp. 722 ff.