611.3531/557

Memorandum, of Conversation, by the Assistant Secretary of State (Sayre)

I called up, on the telephone, Mr. Espil with respect to the Argentine trade agreement negotiations. I told him that we were working hard on the lists of commodities which I had promised to give him during our last conversation together. I said that the lists had been prepared by one of our subcommittees but that they did not satisfy me because the list of our requests from Argentina was too inclusive. I added that I felt sure it would protract negotiations if we handed [Page 223] to Argentina a list containing every concession which might be desired and that my personal idea was to cut our requests down to the minimum so as to shorten the negotiations and make practicable as early a conclusion as possible. For this reason I said that we had asked for a revision of the lists and therefore would not be able to hand him the lists quite as soon as I had hoped. I added that the preparation of the lists was being given precedence over everything else and that we hoped to hand them to him, if all goes well, by the end of next week although we could not make any definite promises to this effect. Mr. Espil replied that he understood. He said that he was anxious to get the lists at the earliest moment possible since he did not feel that he could ask his Government to send an expert here or to take any steps with respect to the trade agreement until he had the lists in his hands. He said that there had been so many delays and so often hopes for negotiations had been deferred that he did not feel in a position to communicate with his Government about the matter until he actually had the lists.

I also told Mr. Espil, in the strictest confidence, that we were very hopeful that announcement could be made of the intent to negotiate with the British Government in the very early future. I said that our hope was that we could make the preliminary announcement concerning Argentine negotiations shortly after the announcement of the British negotiations. I went on to express the hope that, when the announcement of the Argentine negotiations takes place, announcement could be made at the same time of some favorable action by the Argentine Government with respect to the exchange problem. Mr. Espil replied, as before, that he felt doubtful whether the Argentine Government could do much in this respect until actual negotiations are in progress. I explained to him how important it seemed to me that some announcement should be made at the time of the first announcement of negotiations so as to present an attack by our enemies and by an unfavorable press. Mr. Espil replied that he understood this but that he did not see how he could ask his Government, until he had the actual lists, to take any definite steps in the matter,—saying that his position, because of the protracted delays during the past four years, was very difficult.

At the conclusion of our discussion, I reiterated my statement that we would send the list now being prepared at the very earliest moment possible, and I also promised to get in touch with the Ambassador again when we know more definitely about the date of the expected announcement of the British negotiations.

F. B. Sayre