835.5151/642

The Chargé in Argentina ( Wilson ) to the Secretary of State

No. 1517

Sir: I have the honor to report that in the course of an informal conversation held recently, Dr. Louro, head of the Exchange Control Board, informed Consul Ravndal in strict confidence that the Minister [Page 239] of Finance had forwarded to him for comment the Embassy’s note of February 3, 1937.29 Dr. Louro stated that prior to receiving the Embassy’s note he had submitted a detailed report to the Finance Minister recommending that several articles be taken off the list of American commodities entitled to official exchange. He added that lie had pointed out to the Finance Minister that during the past few months the number of applications for prior permits to purchase dollar exchange at the official rate had grown to such proportions that it would be dangerous to maintain the list of preferred articles at its present scope. He advised the Minister that while prospects for 1937 are bright, 1938 might prove to be a bad year and that, therefore, it would be wise to utilize the present to build up a substantial reserve fund to protect the country’s finances in periods of adversity. Dr. Louro declared that he is therefore going to recommend to the Finance Minister with reference to the Embassy’s note that the Finance Minister reply to the Embassy that the Argentine Government regrets not only that it cannot comply with the wishes of the United States Government but also that it must reduce the number of articles which hereafter will be considered as entitled to official dollar exchange pending the negotiation of a trade agreement with the United States.30 Dr. Louro is drawing up a list of American commodities which he feels should be taken off the preferred list. He expressed the belief that the Minister would agree with his recommendations.

He stressed that the projected reduction of the preferred list is not designed to bring pressure towards ratification of the Sanitary Convention and the announcement of trade agreement negotiations.

I am endeavoring to obtain discreetly further information on this subject and expect to see the Minister shortly.

Respectfully yours,

Orme Wilson
  1. For substance of this note, see telegram No. 15, February 2, 2 p.m., to the Ambassador in Argentina, p. 235.
  2. See pp. 213 ff.