835.6363/439: Telegram

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

150. Department’s 96, July 25, 4 p.m. British Ambassador informs me that he has not approached the Argentine Government regarding the decree nor does he wish to do so alone. He says that he is prepared [Page 188] to make joint representations with the missions of countries having companies affected. Dutch Minister has received instructions to keep in touch with situation and I think will follow whatever lead is taken by the American and British Embassies.

There is no unanimity between the two American companies operating in Argentina nor between any of the foreign oil companies since each is affected differently. Texas Company, for instance, having no domestic production may feel itself obliged to agree immediately to the terms of decree if it is to continue in business here. Obviously the non-cooperation of any one company weakens the position of the others in any action they decide to take. I am doubtful whether even their united protest would alter the Government’s intention as the decree reflects the nationalistic spirit here and as the YPF reputedly in financial straits has strong influence with the Government.

Since Embassy’s despatch No. 1161, of April 29, the following despatches numbers 1164 May 4, 1193 May 22, 1274 July 21, and 1279 July 2425 report developments prior to and since issuance of decree. I should appreciate receiving your instructions in this matter at earliest convenient moment.

  1. Despatches Nos. 1161, 1164, 1274 and 1279 not printed.