611.3531/598

Memorandum of Conversation, by the Chief of the Division of the American Republics (Duggan)

In connection with another matter the Argentine Ambassador mentioned to me over the telephone this morning that he had talked by long distance telephone with Mr. Irigoyen, the Embassy’s Financial Attaché, who was now in Buenos Aires. Mr. Irigoyen stated that all of the necessary authorities had now given their clearance to the proposition presented by the Department. Dr. Espil stated that he expected to receive instructions either today or tomorrow to inform the Department of his Government’s willingness to proceed on the basis outlined.

The Ambassador stated that press news despatches out of Washington had caused some disquiet to his Government. The Ambassador stated that he desired to impress as strongly as he could upon this Government the necessity of maintaining in the strictest confidence the information that Argentina will remove the surcharge at the time of formal announcement. He said that knowledge of this intention by speculators would result in all sorts of exchange operations, which his Government wants to avoid. I assured the Ambassador that every precaution would be taken to keep strictly confidential the intentions of his Government in this regard.

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The Ambassador stated that his Government hoped that the preliminary announcement might be made just as soon as notification is made to this Government of Argentina’s acceptance of the proposal presented. I told the Ambassador that I would bring the desire of his Government in this regard at once to the attention of Mr. Sayre.