As I have previously reported, the Embassy, including the office of the
Commercial Attaché, is taking every appropriate opportunity to press
with the Argentine authorities for equality of treatment with regard to
the allocation of official exchange. With the important negotiations
going on at present for a renewal of the Roca-Runciman Agreement,32 it would seem that the Argentines are
particuarly anxious not to give the British Government any impression
that the Argentine Exchange Control Board is relaxing in any way toward
favoring British purchases wherever possible by preferential treatment
in the granting of official exchange.
[Enclosure]
The Acting Assistant Commercial Attaché
(
Clark
)
to the Ambassador in Argentina (
Weddell
)
Buenos
Aires
, April 27, 1936.
Dear Mr. Ambassador: I enclose herewith for
your information a résumé of my conversation on April 23 with Dr.
Louro, Director of the Exchange Control Board.
In opening my discussions with Dr. Louro, I referred to your visit to
Dr. Ortiz some days ago, at which time you had submitted the
memorandum covering the two cases of discrimination against American
materials in connection with Government contracts, and Dr. Louro
informed me that Dr. Ortiz had referred this memoradum to him for
study. However, I left another copy of this memoradum with Dr.
Louro. He, Dr. Louro, then explained that there might be a
possibility of the Government favorably considering our
representations insofar [Page 205] as
the tender of the Obras Sanitarias for aluminum sulphate is
concerned, and he intimated that this matter had been referred to
the Obras Sanitarias for its consideration. However, as regards case
No. 2, the tender for steel sheets, Dr. Louro very frankly pointed
out that the fact that a British firm had submitted a bid
practically presumed that this company would secure the business,
due to the policy of the Government to divert purchases to Great
Britain whenever possible. Dr. Louro mentioned that from their point
of view our suggestion that these tenders should be granted on the
basis of official exchange for all bidders, and that the minimum
expenditure of money by the Government should be a point of material
consideration, was beside the point, and that, particularly in view
of the negotiations now going on in London, it was necessary to
favor English manufacturers, even if this policy actually cost the
Argentine Government slightly more money.
After the discussion of the memorandum, Dr. Louro volunteered the
information that he had received instructions from Dr. Ortiz to be
more generous whenever possible in the consideration of requests for
previous exchange permits covering importations of merchandise from
the United States, and in line with this suggestion from the
Minister of Finance, Dr. Louro informed me that he was closely
studying the entire schedule of the Exchange Control Board regarding
the allocation of exchange, and that he expected to be able to make
a full report to Dr. Ortiz within the next few days. Dr. Louro
stated that it was very probable that as a result of this study it
would be found possible to be somewhat more lenient with American
requests for exchange.
I then took up with Dr. Louro the question of the construction of the
grain elevators, and he categorically informed me that so far as he
knew, at present, manufacturers in Great Britain and in Germany were
the only ones who could submit bids for machinery and equipment in
anticipation of securing official exchange. I inquired as to the
possibility of the Government finding it necessary to purchase
special machinery in the United States which could not be secured
from any other source, and Dr. Louro pointed out that in the case of
such special machinery, official exchange would be allowed, but that
such a matter would have to be the subject of a particular study. He
did not hold out any hope for American interests in securing any
great proportion of this elevator business, as its allocation, as in
the case of the steel sheets, is apparently to be placed with the
British interests if this is possible.
In leaving Dr. Louro he asked me to feel perfectly free to come to
him and to Dr. Calvo, his assistant, whenever there was anything
that the Embassy might like to discuss regarding the matter of
exchange, or exchange control. I naturally assured him that I
appreciated his attitude, and warned him that I should very probably
take advantage [Page 206] of his
offer. I could not, however, avoid the conclusion during our
conversations that the policy of the Exchange Control Commission is
dictated by the Minister of Finance himself, and that Dr. Louro is
simply its guardian. In other words, any concessions that may be
made to American goods, or any improvement in general conditions
must come from Dr. Ortiz. Dr. Louro also spent some time in
discussing with me the renewal negotiations of the Roca-Runciman
Treaty, and outlining the point of view of the Argentine Government
regarding the necessity of making concessions to the British
interests. Without his saying so, I gathered that the current policy
is to extend further advantages to Great Britain even at the expense
of Argentina’s other commercial relations and I frankly think that
there is a distinct possibility, if the Agreement is renewed, of the
position of American merchandise in this market being even further
prejudiced. On the other hand, if this agreement should not be
renewed, our chances for better treatment would improve
immeasurably. However, I do not think that there is any reason to
believe that the Agreement will not be renewed, that is, insofar as
the Argentine Government is concerned, although there is always the
possibility of it becoming a bone of contention between the
Government of the United Kingdom and the various Dominions. In any
event, I certainly do not think that there is any chance of our
seeing any distinct or definite gain in the amount of official
exchange granted for American merchandise coming into this market
until the London negotiations have been concluded.
I have [etc.]