835.5151/696: Telegram

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

88. My 71, May 21, 11 a.m. In conversation yesterday between a member of the staff and the Under Secretary of Finance, Dr. Louro of Exchange Control Office had prepared a memorandum for the [Page 244] Minister of Finance on the subject of my interview of May 20. Saenz stated that the Minister, Louro and himself would confer on this memorandum after which the Minister would ask me to see him.

During conversation Saenz stated that he was aware of unfortunate impression created in the United States by the exchange discrimination. He thought that without a trade agreement it would be very difficult for Argentina to grant official exchange on all imports owing to the various treaties Argentina has concluded with other countries. He suggested, however, that it might be possible for Argentina to abolish exchange discrimination until the end of the negotiations for a trade agreement, implying thereby that such discrimination would be reestablished if such negotiations are unsuccessful.

Owing to political developments here it is probable that Ortiz will soon resign as he is a candidate for the Presidency. I hope, however, that I shall see him before this takes place.

Wilson