[Enclosure]
Special Report 316–C by the Commercial Attaché
in Argentina (Dye)
Buenos
Aires
, August 16, 1935.
Since the early part of this year, a discrepancy has been noticed
between the statistics of Argentine exports to the United States
compiled from consular invoices which have been certified in the
Consulate General and the Argentine official export statistics. This
discrepancy increased as the year advanced and for the first six
months the declared value of Argentine exports as stated in consular
invoices sworn to before the American Consulate General amounted to
the equivalent of about 126 million paper pesos, whereas according
to Argentine official statistics they amounted to only about 86
million paper pesos, the discrepancy being approximately 40 million
paper pesos.
A number of conferences was held by the Commercial Attaché with the
Director General of Statistics and the Assistant Director of the
Exchange Control Office, and detailed information was prepared by
the Consulate General, showing the basis on which shipments of corn,
wheat, rye and oats were made to the United States. The result of
the conferences has been as follows:
Between seven and eight million pesos were accounted for by the fact
that cereals were sold in advance at a higher price than the price
[Page 277] prevailing at the time
shipment was actually made. For instance, the value given by the
exporters of shipments to the United States of corn in January
amounts to an average of $7.33 paper pesos per 100 kilos, whereas
the average of current prices for corn for export in Buenos Aires
during the month of January was only $5.95 paper pesos, showing a
difference of about 21 percent. The explanation was that the corn
which was actually shipped in January, 1935, was sold in September,
1934, at a price which was higher than the price at the time of the
actual shipment. Inasmuch as the value given in the declaration
before the American Consulate was the real value, our claim is that
that amount of exchange should have been allocated to American
interests. The Exchange Control Office has admitted the justice of
this claim.
The result of the investigation of the cereal shipments has shown
that the largest discrepancy is in the tonnage. For instance, in the
month of May, according to the Consulate’s figures, 181,000 tons of
corn were shipped to the United States, whereas according to the
Argentine Statistical Office only 40,000 tons were shipped. However,
in checking back shipment by shipment, it shows that in the month of
May, according to the Argentine statistics, out of 181,423 tons,
which the Consulate General claims were shipped to the United
States, 148,950 tons, or 82 per cent, was declared before the
Argentine authorities as shipped “To Order”. Shipments “to order”
have ninety days before they must report the country of destination
and exchange is provided. As the bulk of the exports of cereals to
the United States was shipped after the 1st of April and, therefore,
they will have ninety days from that date, they will not have to
report the shipments until in the middle of July and thus will not
appear in the statistics until these are out for the month of
August. I have been assured by the Exchange Control Office that when
this tonnage is eventually allocated, that the exchange will also be
allocated and given to American interests at the official rate. We
shall, therefore, have to watch the statistics carefully,
particularly from September 1st onward.
An investigation of the shipments of rye showed that the Consulate
General had received consular invoices declaring that a total of
44,208 tons of rye had been shipped to the United States. According
to the Argentine figures, however, all of this amount went to Canada
to the Port of Montreal. It is the belief of the Consulate General
that this rye actually entered the United States and a telegram has
now been sent by the Consulate General, giving the names of the six
boats and requesting information as to whether this rye was actually
landed in the United States. As soon as a reply is received, the
Argentine Statistical Office and the Exchange Control Office will be
advised.
The Argentine authorities brought up the point as to whether there
were not two consular certificates taken out for this rye: one for
[Page 278] Canada and one for the
United States, but the American Consulate General assures me that
this is not the case; that Montreal is a free port and that,
consequently, it was not necessary to take out any Canadian consular
invoices.
During all of this discussion, we have not taken the position that it
was satisfactory to accept only the exchange which was provided by
exports to the United States, but efforts were made to show that
even on that basis, the American interests were not receiving the
exchange which the Argentine Government declared it was willing to
give them, due to the discrepancy in statistics. If our position is
correct (and we believe it is), that these cereals eventually
reached the United States and were actually imported, it should
provide us with about 40 million pesos additional exchange which
should be cumulative during the latter part of the year, and which
should assist imports from the United States to that extent.
Respectfully submitted:
