835.5151/706

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

No. 1656

Sir: I have the honor to report that I was received this afternoon by Dr. Acevedo, the new Minister of Finance, with whom I discussed the discriminatory treatment which Argentina is now according to imports from the United States.

During the course of the conversation only the general aspect of the subject was touched upon as Dr. Acevedo stated he had been so busy receiving great many visitors who came to offer him their good wishes that he had been unable to give much time to the actual business of his Ministry. Nevertheless I outlined to him the Embassy’s note of February 3rd, emphasizing to him the many complaints that were being received by the Department from American exporters. I said that this discrimination was occasioning an atmosphere not entirely favorable to Argentina and went as far as to express as my own personal opinion that if this discrimination could be entirely removed or if at least the list of articles now receiving official exchange could be augmented the effect which this would have on opinion in the United States would be a happy one and might be helpful if negotiations for a commercial agreement should at any time be undertaken. I requested that if the Argentine Government should not be willing to remove the discrimination entirely it should at least increase the aforementioned list.

Our conversation also touched on the trade balances between the two countries. I pointed out to him that for several years Argentina’s [Page 245] position in this respect had been satisfactory and that in view of the considerable variety of articles which the United States had been purchasing from Argentina it might be expected that the latter’s position would not be as unfavorable as it had been in the past. He acknowledged that the American trade was a desirable one and said that he would like to see a commercial agreement concluded in order to protect Argentine exports to the United States. He made much of the argument, however, that the extraordinarily favorable balance of trade which Argentina is now enjoying had been in existence only during the present year and added that in order correctly to estimate how much official exchange could be given to American imports it would be necessary to ascertain the status of the invisible trade balances. In connection with the latter I reminded him of the greatly reduced debt services which Argentina now had to meet in the United States. He conceded this point but said that he wished to study the matter and that as soon as he had done so he would ask me to see him again.

Dr. Acevedo and I also discussed the commercial agreements which Argentina had recently been concluding with other countries. He pointed out to me the strictly bilateral character of these agreements as regards exchange and said that, although he favored the multilateral theory of trade advocated by Secretary Hull, Argentina had been forced into concluding bilateral treaties owing to the uncertainty of the trade situation throughout the world. I inquired whether in the event of negotiations with the United States for a commercial agreement the matter of official exchange would form a part of these negotiations. He answered in the affirmative, indicating that the Argentine Government desired to handle this matter as far as the United States is concerned in the same manner as it had done in its agreements with other countries.

Although, as stated above, I was unable to obtain from Dr. Acevedo any statements indicating definitely that relief would be granted to American exporters it has seemed to me advisable to transmit to the Department the leading points of my conversation with him in order to give an indication of his attitude toward the commercial relations between his country and the United States.

Respectfully yours,

Orme Wilson