102.81 Buenos Aires/37: Telegram

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

104. From Commercial Attaché to Commerce. 17. Argentine Government accepted loan 23,000,000 French francs from holders French-Swiss-Belgian-Dutch blocked Argentine pesos on terms similar Roca [Page 764] loan bonds to be issued in currencies of respective countries. No official announcement made of conversion rate but understand was 14.69 less 3 percent. Amount smaller than expected. Understand practically all taken by two firms Chade and Port Rosario. Believe meager results of loan creates more favorable atmosphere for American negotiations. American negotiators should insist on provision adequate exchange future imports. Several reports from fairly reliable sources indicate exchange control refusing permits in order to bring pressure on negotiations but matter difficult to prove. Dye.

Weddell