611.3531/604a
The Secretary of State to
the Argentine Ambassador (
Espil
)
Washington
, February 12, 1938.
My Dear Mr. Ambassador: The reason this
Government has brought the question of exchange treatment to the
forefront at this stage of discussion regarding a possible trade
agreement between [Page 282] the
Argentine and American Governments, is solely, as I believe you
recognize, the desire to avoid unfruitful disturbance of trade both in
this country and in Argentina if preliminary interchange of the type
that had been going on reveals the likelihood that this question of
exchange would prove an unsurmountable obstacle to agreement. Therefore
my Government has been striving to formulate the type of exchange
arrangements which it regards as an essential element in any trade
agreement that might be arrived at. I attach herewith a formulation of
such arrangements; this formulation consists of a single draft article
for inclusion in a trade agreement and a draft letter of explanation and
interpretation of the article.
If an agreement can be reached that trade agreement discussions will
proceed on the definite understanding that if and as any trade agreement
is concluded these shall be the exchange provisions, this Government
will be very pleased to initiate negotiations.
More precisely if the Argentine Government can state its agreement before
February 25, this Government is prepared to make preliminary
announcement within three days thereafter.
I shall ask the American Ambassador in Buenos Aires to supplement the
discussions which have taken place with a full presentation of the
considerations shaping our views. I greatly hope that preliminary
understanding can be reached on this point so that trade agreement
negotiations can be promptly initiated.
Sincerely yours,
[Enclosure 1]
Draft of an Article Relating to Exchange
Arrangements for Inclusion in Trade Agreement
In the event that the Government of the United States of America or
the Government of the Republic of Argentina establishes or maintains
any form of control of international payments, it shall, in the
administration of such control, accord to the commerce of the other
country the most complete application of the unconditional
most-favored-nation principle.
[Enclosure 2]
Draft of Letter of Explanation and
Interpretation of Article Relating to Exchange
Mr. Secretary of State: Animated with the
purpose of making Article _ of the trade agreement signed today
between the Republic of Argentina and the United States of America
perfectly clear, my Government has authorized me to advise Your
Excellency that so [Page 283] long as
the Argentine Government maintains control over foreign exchange, it
will so administer that control under the provisions of Article _
that the exports of the United States will suffer no competitive
handicap in exchange matters, as compared with the like products of
other countries. This undertaking will be carried out as follows:
- (1)
- There shall be prepared jointly by the American Embassy in
Buenos Aires and the Argentine Government a list including
all articles in respect to which the Argentine Government
intends to make official exchange available for payment for
imports from any country. This list shall include all
articles in respect of which any official exchange was made
available to any country during the twelve calendar months
next preceding the date of the conclusion of the trade
agreement. This list shall be revised bi-monthly, so as to
show the products as to which official exchange was given to
any country during the twelve months immediately preceding.
The American Government shall be free to publish this list
for the convenience of its exporters.
- (2)
- The Argentine Government will make official exchange
available promptly, unconditionally, and without restriction
in respect of importations of all articles the growth,
produce or manufacture of the United States of America
enumerated in such list.
- (3)
- In respect of importations of any article the growth,
produce, or manufacture of the United States of America not
enumerated in the aforementioned list, the Argentine
Government will place no restriction on the transfer of
payment through the free market, and no tax which is other
or higher than that made to apply in respect of payments for
importations of the like article the growth, produce, or
manufacture of any third country.
- (4)
- In addition to the above, my Government undertakes that in
respect of the transfer of all non-commercial payments, the
Argentine Government will continue to accord to the United
States of America treatment no less favorable than that
accorded to any third country.
