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

No. 1439

Sir: Reference is made to my despatch No. 1389 of October 15, 1936, reporting that official exchange is now being granted on all the fifty categories of merchandise granted by an exchange concession.

As far as I am able to ascertain, official exchange covering these fifty categories is still being granted. However, in the case of a bid on the part of the Pullman Standard Car Export Company for equipment [Page 219] for the Government railways amounting to over one million dollars and falling under three of the fifty categories, the Exchange Control Board refused to grant this Company official exchange. It was only upon urgent representations to the Minister of Finance that I was able to receive assurances that official exchange would be applied. This Company is now hopeful of securing the contract.

Although I have brought up several times with the Minister of Finance the desirability of increasing the list of fifty categories—envisaged by him when this exchange concession was granted—the Minister has finally given me to understand that no increase will be possible at least until after negotiations for a trade agreement between the two countries have been initiated.

Respectfully yours,

Alexander W. Weddell