611.3531/532: Telegram
The Ambassador in Argentina (Weddell) to the Secretary of State
[Received 4:41 p.m.]
197. My 194, October 14, 5 p.m. 1 yesterday inquired of the Minister of Foreign Affairs what progress was being made by the Commission in question. He said that he was still discussing the matter with other Ministries and that his idea was that this Commission when appointed should discuss the entire subject informally and without engagement with a commission from the Embassy to be appointed by me.
I told him that I believed it was rather the view of my Government that any discussion which might be undertaken should be carried on in Washington as he would see by reference to my confidential memorandum. I added that, as I had pointed out in my note of February 6, the application of the surtax was considered by my Government as a discrimination and that I rather felt that elimination of this discrimination should take precedence over anything else. He [Page 219] then showed me a telegram from Ambassador Espil dated September 29 indicating that the Department was ready to begin informal discussions but containing no reference to exchange. With regard to this latter subject the Minister for Foreign Affairs seemed to feel that to grant official exchange to all imports from the United States would upset the local exchange market. I replied that this seemed an exaggeration and that with the possible exception of automobiles I thought the effect would be slight.
A member of the Foreign Office intimated in conversation yesterday to the Embassy that he thought the first point to be taken up by any Commission which might be appointed would be whether Argentina could grant official exchange to all American imports for 6 months as previously suggested.