611.3531/579
The Argentine Ambassador (Espil) to the Secretary of State
I am transmitting to Your Excellency the text of the memorandum reply prepared, by the Commission of Officials, which has been approved by the Ministries of Hacienda and of Agriculture:
“The Argentine Government has seen with pleasure the communication that the Government of the United States has considered anew the subject relative to the negotiation of an agreement of commercial reciprocity between the two countries.
“The Argentine Government hopes that the negotiations proposed by the United States Government may arrive at a happy termination thus creating a definitive basis for the removal of regulations such as that of the surcharge on foreign exchange, and others, thus contributing to the reestablishment of a régime assuring the increase of commercial exchange and the economic cooperation of the two countries in the international order.
“In that sense the emergency measures which the Government has taken in order to protect national economy owe their origin to the necessity of preventing disturbances proceeding from disequilibrium of the balance of payments produced by the difficulties which other countries have opposed to the free entry of Argentine products, especially excessive tariffs, and by disturbances in the international markets of capital.
[Page 232]“The Argentine Government has the firm intention of leaving them without effect as soon as the causes which have given origin to them disappear.
“The Argentine Government is disposed to grant to the United States the same treatment as that accorded to the countries which have signed commercial agreements with Argentine and in the measure that may be permitted by the availability of exchange produced by the sale of Argentine products in the United States, provided that as a result of the negotiations which that Government proposes to initiate a régime should come to be established which would allow in a regular way an adequate volume of exportation of Argentine products to that country.
“The said treatment would come into effect as soon as the Argentine Government may be in a position to determine the approximate volume of the sales of Argentine products on the United States market which would result from the negotiations proposed by the Government of the United States. Within the existing régime of control, it is indispensable to determine, although with a certain anticipation, the volume of exports in order to insure the regular and uniform adjudication of available exchange.
“In that sense, it is well to take into account the fact that the volume of the sales of Argentine products recently attained in the United States may be considered as extraordinary and of an irregular character and that it would be necessary that the said products should be the object, on the part of the Government of the United States, of a better treatment than the present in customs matters and administrative regulations, so that the said volume may be maintained in a regular and permanent way.”
In case this memorandum should allow of making the preliminary announcement, this Chancellery deems that it would be well that the said announcement should be made simultaneously and in the same terms at Buenos Aires and at Washington.