835.6363/466: Telegram

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

209. My 202, September 29, 1 p.m. Buenos Aires City Council yesterday passed a bylaw whose essential points are as follows: the sale and distribution of gasoline in the federal capital is made a public service, an exclusive concession is granted to YPF for this service, 4 years after bylaw comes into force YPF is obliged to sell gasoline from its own refineries.

Bylaw appears to be in line with marketing arrangement already reported to Department and signed on September 30 by small oil companies.

Bylaw has not yet been promulgated by Mayor and is considered by oil company lawyers unconstitutional. Text by air mail. Shall cable local reaction.