835.5151/681: Telegram

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

71. Yesterday afternoon, at the suggestion of the Minister of Finance, I saw Louro, Chief of Exchange Control Board, with reference to Department’s note of February 3. At outset Louro stated that Espil’s speech at New York on May 19 set forth exactly the Argentine Government’s viewpoint. Louro emphasized that although the Argentine authorities recognized the favorable balance of trade with the United States they considered this of relatively minor importance and were of the opinion that any concessions towards relaxation of exchange control must be based on the conclusion of a treaty. I gathered that it is Argentina’s present policy to assure stable markets for her primary products through the conclusion of treaties with consuming nations and that such countries thereby obtain preferential exchange treatment. He added that if the United States should conclude such a treaty the question of exchange discrimination would be automatically solved.

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I repeated to Louro pertinent portions of the note of February 3 and inquired when an answer could be expected. I referred to the desirability of an extension of the list of American imports now entitled to official exchange pointing out that American exporters are resentful of the discrimination to which they are being subjected and indicating that more liberal treatment in this respect would improve sentiment in the United States towards a possible trade agreement and commercial relations in general. In conclusion Louro explained to me that the reply to our note of February 3 depends upon the Minister who has been very busy with the preparation of the budget for 1938. I expressed the hope of an early answer. He said that he would convey my remarks to the Minister.

Wilson