835.6363/437: Telegram

The Chargé in Argentina (Cox) to the Secretary of State

144. Embassy’s despatch 1061 [1161] of April 2921 and subsequent. Executive decree22 published today prohibits exportation and limits as from August 5 next importation of petroleum and liquid hydrocarbons under what, in effect, is a license system determined and operated by the YPF,23 the Government owned oil administration. Local heads of Standard Oil Company and Texas Company inform me that decree will have far-reaching effect on their importations of crude oil, roughly estimated in the case of Standard at 40 per cent and in the case of Texas at practically 100 per cent. I understand Standard Oil Company is consulting with the British oil companies here with a view to joint action through legal channels. Resume of decree as published in today’s press being forwarded by air mail tonight.

Cox
  1. Not printed.
  2. Decree 86,639 of July 20, 1936, published in La Nación, July 21.
  3. Yacimientos Petrolíferos Fiscales (Argentine State Oilfields).