835.512 Insurance Tax/2: Telegram
The Acting Secretary of State to the Chargé in Argentina (White)
57. Representatives of the American Association of Marine Underwriters visited the Department yesterday to express their disapproval of a provision in the Argentine law enacted June 1932 and about to be enforced imposing a tax of 7% on all insurance premiums paid on policies covering shipments of merchandise proceeding from the United States to Argentina or vice versa placed with American companies not licensed to do business in Argentina. They pointed out that this tax is extraterritorial because imposed on property not situated within the country and that it will tend to drive business from American to local companies which are not subject to this tax. They stated that very few American companies are licensed in Argentina to underwrite marine insurance.
Please bring this matter immediately to the attention of the appropriate authorities and express the hope that they will postpone the enforcement of this measure until this Government has been able to make a study of its provisions.
[Page 786]You might point out that in view of the conversations that will soon be held with the Argentine Ambassador with reference to the conclusion of a commercial convention54 it would seem unfortunate if such a measure were to disturb seriously the trade relations between the two countries.
Reply by cable.