835.5151/208a: Telegram

The Acting Secretary of State to the Secretary of State39

7. Though the Department has not participated in the negotiation of the arrangement just reached between the American holders of blocked funds in the Argentine and the Argentine Government, you will probably be interested in the fact that an agreement appears to have been reached.40 The Argentine Government offers American holders in exchange for their blocked funds dollar Argentine Treasury bills payable in 180 equal monthly maturities over 15 years, paying 2 per cent interest and 4 per cent amortization during the first 5 years, and amortization of the balance at 8 per cent annually for the remaining 10 years. Bills will be issued at the fixed rate of 38.7 cents United States currency per paper peso, the holder to have the option during his life to convert into 20–year, 4 per cent bonds similar to the sterling [Page 765]bonds issued. The American representatives are publishing notices inviting holders of blocked funds to subscribe.

Phillips
  1. On board the S. S. American Legion at sea.
  2. The agreement was executed at Buenos Aires on December 1, 1933.