835.51B801/116: Telegram

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

118. Your 182, August 17, 11 a.m. The Council has requested further data from the Province in regard to latter’s new offer. Council states it learns from strictly confidential source that the provincial government urgently desires to have foreign debt plan approved by the provincial legislature before latter adjourns in about 10 days’ time, and Council fears there is some danger of precipitate action being taken by the provincial authorities. Council of course desires to expedite settlement but fears the provincial government may take unilateral action before full opportunity afforded for negotiating. Please have Dye continue to keep in touch with situation and if it appears there is likelihood of debt legislation being precipitated before agreement reached with Council, you are authorized to discuss informally with appropriate authorities the view of the Council as representing American bondholders that no unilateral action should be taken pending opportunity for full discussion.

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For your confidential information and with reference to your telegram 170, August 12, 5 p.m., the Department has been reliably informed that the former offer was not satisfactory to the bankers.