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

173. I orally conveyed message confirmed in Department’s 111, August 22, 1 p.m., to Foreign Office before noon August 22, the time limit given the companies by the commission for their compliance. Dutch Minister informs me that he also requested an extension. Standard states that companies have now been given several days’ grace to consider their position under proposed marketing scheme. Standard and Shell have withdrawn for the present the reservations of their legal rights. I am informed that Itaca (Anglo-Persian) has definitively aligned itself with Standard and Shell-Mex.

Standard today states that at meeting Saturday between oil companies and commission the latter proposed to continue conversations and in the meantime that all companies should agree to discontinue special rebates and discounts pending agreement on the marketing arrangement. Oil companies meet today to consider this proposal.