835.6363/448: Telegram

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

170. Embassy’s 144, July 21, 5 p.m. and subsequent correspondence. Local office Standard Oil Company informs me this morning that at yesterday’s meeting between the private oil companies YPF and special Commission created by executive decree of May 8, private companies were given until tomorrow noon to agree in principle to a marketing scheme somewhat similar to that reported in my despatch 1297, August 7, and additionally, as concerns the Standard Oil and Shell-Mex Companies only, to withdraw the reservation of their legal rights handed the Ministry of Agriculture when these latter companies applied for enrollment on register mentioned in article 4 of executive decree. Standard states that it was told that if it did not unqualifiedly withdraw its reservation it would not be permitted to take part in the proposed marketing scheme. It informs me that the Texas Company and several minor private companies have signified readiness to adopt the commission’s proposal. It has cabled full details to its New York office requesting instructions and pointing out that the matter now is one either of principle or of expediency in the sense that if company stand on its alleged legal rights it might take as long as 4 years before the courts determine such a case and in the meantime company might be practically eliminated from business. Shell has cabled London requesting assistance in the matter getting an extension in the period given by commission for that company’s compliance. British Embassy has just received a cable from Foreign Office instructing it to suggest Shell’s request in such manner as it deems advisable.