611.3531/678: Telegram

The Ambassador in Argentina ( Weddell ) to the Secretary of State

296. Referring to information from Louro that a special mission might be sent to Buenos Aires to continue trade negotiation conversations, I consider it important that some preparatory work precede such a step, if contemplated, otherwise not only the success of the special mission but also the prospect of concluding an agreement might be seriously prejudiced. It would be unfortunate to have such a mission come to Argentina with the inevitable publicity, both official and public, which would accompany it until there is reason to believe that tangible results can be obtained within a reasonable period.

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The preoccupation of the Argentine officials with the exchange question and our failure to ratify the sanitary agreement26 has tended to obscure the real value of proposed concessions to the Argentine. I am convinced that the local higher officials have not as yet had presented to them a sufficiently detailed study and until this is done they are inclined to regard concessions on our part as inadequate, theoretical and of small consequence. In such circumstances they would be apt to interpret the coming of a mission as evidence of a willingness on our part to trade concessions for a relaxation of exchange control. A further disappointment at this time would, in my opinion, seriously prejudice the success of future negotiations. Therefore as previously stated I consider it most desirable to have a study of the advantages of tariff concessions precede, and not follow, the arrival of any such mission.

I therefore suggest that the Department send its detailed study with full instructions to the Embassy authorizing it and the Consulate General to undertake series of informal conversations with the Argentine country committee with a view to presenting an objective analysis of advantages to be derived therefrom by the Argentine Government. This I believe could be done without publicity and without arousing false hopes. I felt that we could count on the cooperation of local government officials in such meetings during which we would undertake to stress the value to this country of tariff advantages in such an extensive market as that of the United States.

In any event I suggest that the Department await my arrival before deciding to send a special mission to Buenos Aires.

Weddell