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

No. 1354

Sir: I have the honor to refer to my despatch No. 1314 of August 21, 1936, dealing with the probable effects of the recent Argentine exchange concessions on American trade. I now wish to report that official exchange is being granted on all the fifty categories of merchandise granted by this exchange concession with the exception of x-ray films. These films come under category No. 690 entitled “Surgical Instruments and Material for Clinics and Laboratories”. I am taking up this point with the Minister of Finance in my discussions with him on exchange.

In the Embassy’s despatch No. 1314 of August 21, 1936, it was stated that automobile trucks, included in No. 101 of the fifty categories of merchandise, were not being granted official exchange. In discussing this matter with the Exchange Control Board, it was learned that while category No. 101 allows official exchange for imports of automobile truck, this category does not include automobile truck chassis for which the importers were requesting official exchange. However, the Exchange Control Board has shown itself disposed to give a broad interpretation to this list of categories or even to amplify it wherever possible by granting official exchange to electric refrigerators for the first time.

. . . . . . . . . . . . . .

While the amount of official exchange granted for the importation of United States merchandise has thus not increased over last year, it should be kept in mind that the recent Argentine exchange concession was not granted until the middle of June. Furthermore, it is expected that with shipments of grain to the United States increasing each month, the amount of official exchange granted for the last six months should show a considerable increase.

In this connection, however, it may be re-emphasized that in my discussions with the Argentine Treasury authorities care is being taken not to base our claim for more liberal exchange treatment on the amount of our purchases in this country.

Respectfully yours,

Alexander W. Weddell