835.6363/473: Telegram

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

221. I informed the Minister for Foreign Affairs yesterday of the contents of your 134, October 10, 2 p.m. He appeared sympathetic and said that he would pass on my remarks to the appropriate authorities and would let me have a memorandum on the subject shortly.

The oil companies report that negotiations with the Argentine commission are still continuing and in a friendly spirit, that no further mention of a time limit has been made and that the Argentines are gradually becoming more conciliatory.

There is much to indicate that the Argentine Government is endeavoring to drive as hard a bargain as possible with the oil companies and must eventually reach some sort of an arrangement with them. The Standard seems more optimistic although, of course, the negotiations are being prolonged far beyond any expectations.

Standard reports that if the municipal bylaw is not signed by the Mayor within ten working days after October 6, namely, about October 20, it automatically becomes law. Standard and Shell-Mex have endeavored without success to get smaller companies to join them in the protest against the bylaw which the two companies expect to file shortly.