611.3531/507: Telegram
The Secretary of State to the Ambassador in Argentina (Weddell)
91. Your telegram No. 158, August 26, 6 p.m. Unless you perceive objection please present the following confidential memorandum to the Argentine Government.
“The United States Government has carefully considered the arrangement recently suggested to the American Embassy by the Under Secretary of Finance. Its understanding of the proposal is that Argentina would grant official exchange for all imports from the United States for a period of 6 months in the expectation that trade-agreement negotiations would be initiated within that period, and that, if within 6 months such negotiations shall in fact have been begun, this exchange treatment will continue thereafter.
The United States Government is deeply gratified that the Argentine Government appears prepared to take so constructive a step at this time. It hopes that the Argentine Government will put the suggested arrangement into operation now and begin to grant official exchange for all imports of United States goods.
Although there are a number of factors in the situation which will have a bearing upon whether the United States will be able to begin formal negotiations within 6 months, among which one of the most important is the prospect for expanding foreign markets for United States agricultural products by means of additional trade agreements, it seems to the United States Government at the present time to be quite possible that events will so shape themselves that this can be done. Meanwhile, in order to facilitate the rapid conclusion of the negotiations as soon as it becomes possible to undertake them, this Government would be prepared to enter into informal and confidential discussions regarding the possible terms of an agreement. Inasmuch as similar discussions have been held in the past between [Page 217] the Argentine Embassy in Washington and the Department of State, it is assumed that the exploratory conversations now contemplated would be held in Washington. The Department would be pleased to commence such conversations immediately, or as soon as appropriate instructions are received by the Argentine Ambassador.”
In presenting the foregoing memorandum to the Argentine Government you should emphasize that this Government is not making any information public which would indicate that trade-agreement negotiations with Argentina are impending and that in reply to any inquiries which may be received it intends to state merely that exploratory conversations in regard to trade matters of mutual interest are being carried on as they have been from time to time in the past. Please request the Argentine Government to treat the matter with similar reserve in order that the disadvantages of premature publicity may be avoided.