835.6363/478: Telegram

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

286. My 144, July 21, 5 p.m.; and 244, October 28, 4 p.m. Representatives of Standard inform me that negotiations between them and Argentine authorities have thus far failed to reach definite agreement on marketing arrangement. A temporary settlement lasting 6 months has been approved according to which Standard will receive import permits. Marketing of gasoline in the capital and outlying districts will remain virtually unaffected, municipal bylaw establishing gasoline monopoly for Buenos Aires in favor of YPF has been completely abrogated following dispute between Mayor and Municipal Council.

Am informed by Standard officials that terms of plan to sell company’s property to the Government are now being examined by ex-President Alvear, the leader of the Radical Party and that his decision will determine the fate of the proposal.