835.5151/596
The Ambassador in Argentina (Weddell) to the Secretary of
State
No. 1389
Buenos
Aires, October 15, 1936.
[Received October
23.]
Sir: I have the honor to refer to the Embassy’s
despatch No. 1354 of September 17, 1936, informing the Department 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. I now wish to report that X-ray films are also receiving
official exchange.
I yesterday had a further discussion with the Minister of Finance over
matters connected with our commercial relations. The principal reason of
my visit with him was to urge an increase to the list of fifty
categories of merchandise from the United States to receive official
exchange granted to us by the Minister’s note of June 16, in which he
promised to study the possibility of such an increase. I enclose
herewith a memorandum of my conversation with the Minister.
While Argentina’s exchange position has strengthened considerably with an
increasing amount of foreign exchange available, this position hinges to
a large extent on the outcome of the negotiations now going on for a
renewal of the Roca-Runciman Agreement. I understand that exporters
shipping products to Great Britian as well as British vested interests
here are pressing for exchange concessions eliminating the Government’s
margin of profit between the buying and selling rate, and that this
aspect is now playing a large part in reaching an agreement satisfactory
to both countries.
Respectfully yours,
[Enclosure]
Memorandum by the Ambassador in Argentina
(Weddell)
I called on the Minister of Finance today by appointment and
discussed with him at considerable length various phases of our
commercial relations which are of current interest to us both.
I first referred to the Minister’s order of June 16 relative to
official exchange granted to fifty categories of merchandise
imported from the United States and recalled his expression of hope
that he might increase the list of such categories. I pointed out to
him the feeling on the part of our Government that continuation of
Argentina’s exchange restrictions still contains elements of
discrimination. The Minister said that he would continue to study
the matter of increasing the number of categories to be granted
official exchange and would advise me later.
I also referred to my hope that official exchange would be granted to
American bidders for the three series of contracts of the Argentine
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Government for
elevators and for elevator equipment. The Minister said that he was
having a meeting this afternoon of the Autonomous Commission which
had this matter in charge and which would discuss and settle these
very points. The Minister said he would be very glad to inform me by
memorandum tomorrow what decision had been arrived at. The Minister
said in conection with this that it had been decided to pay for the
grain elevators in cash and not by Government bonds.
I called the Minister’s attention to the fact that while the United
States was now importing large quantities of Argentine corn shipped
via Canada, exchange credit for such shipments appears not to be
given to the United States. I stated that up to the end of September
it was my understanding that the United States had purchased
$20,000,000 worth of Argentine corn and $12,000,000 worth of
Argentine linseed but that the United States is credited with having
bought only $8,500,000 worth of corn and $10,500,000 worth of
linseed. While I realized that there are explanations for some of
the discrepancies in these figures, I said I was sure a good deal of
the exchange that should be credited to us is being credited to
Canada. The Minister said that as a result of a new system of
statistical accounting which was being introduced he thought it
would be possible to straighten out the matter of the conflicting
figures. I said I hoped that later after we had secured more
detailed official figures the Embassy could take this matter up with
the Statistical Office. The Minister said he would be glad to have
this done and to discuss further phases of the question.
We spoke at some length of the movement of American capital to
Argentina and of a certain amount of uneasiness provoked by recent
events. We touched on the action of the Municipality of Buenos Aires
in connection with the by-law making the sale and distribution of
gasolene a public service and its possible effect. In this
connection I emphasized to the Minister my understanding that
foreign capital in Argentina would be fully protected as long as it
obeyed domestic laws and regulations without regard to its foreign
origin.
Before leaving the Minister I expressed my thanks for his action of
September 22 regarding the customs classification of refrigerating
units (see Embassy’s despatch No. 1374 of October 2, 193644). I said to the
Minister that his resolution which was gratifying to exporters of
such units from the United States and to local importers and
manufacturers makes operative what is practically an equivalent of
the previous classification and corrects any element of
discrimination. The Minister said he had been very glad to arrange
this despite some opposition from the customs authorities.
