835.51B861/146: Telegram

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

254. Embassy’s No. 252, October 22, noon. I have just received a letter from the Foreign Office dated October 21 giving the Minister of Finance’s reply to the questions in Foreign Bondholders Protective Council’s cable to the Finance Minister dated August 23, a literal translation of which is as follows:

Law No. 12139 for unification of national internal taxes on consumption is actually in force and its duration is fixed for 20 years, and will be extended for a further period of 10 years provided that neither the nation nor the provinces denounce it at least 2 years in advance.
The application and collection of the unified taxes are in the charge of the national Government.
By virtue of the same law the payment of the taxes is effected by the contributor into the account “national internal taxes” of the Bank of the Argentine Nation which distributes directly to the provinces their share, crediting the remainder to the nation.
The Ministry of Finance has received a note from the government of the Province of Buenos Aires requesting that instructions be given the Bank of the Argentine Nation that as from January 1, 1936, the funds to be credited to that state derived from the law for unification of national internal taxes be deposited in a special account to be opened by said government in the same bank under the name of “account for the service of the external public debt of the Province of Buenos Aires”. On September 27 last the Ministry of Finance addressed a note to the bank for this purpose.

Please inform Council.