611.3531/699: Telegram
The Chargé in Argentina (Tuck) to the Secretary of State
[Received 7:26 p.m.]
333. Department’s 185, December 17, 2 p.m. Accompanied by Consul General Davis and Commercial Attaché Dunn, I called yesterday evening by appointment on Cantilo who had returned from Lima on the 24th. In the plainest possible language I called his attention to the situation which has arisen as a result of the refusal of prior permits for the importation of American goods. I impressed upon him the injury already being done to individual businesses by the refusal of permits, resulting in extreme pessimism created in the American business community, and the extent to which American trade stands to lose. I referred to the visit of Fowler and Sappington as evidence of our intention to proceed as rapidly as possible to find a basis for trade agreement negotiations and pointed out that the application of these restrictions might seriously complicate the problem of negotiating a trade agreement.
[Page 313]The discussion which ensued, which was implemented by a strong and forceful presentation of technical information supplied by Davis and Dunn, only served to reveal how completely Cantilo fails to understand the basis and meaning of our commercial policy, the importance of American purchases in Argentina during recent years, as well as the potential advantages to be derived from a trade agreement with the United States. He reverted continuously to the original thesis that we should not expect to sell since we were not buying Argentine products, referred to our high tariff, and to our failure to ratify the sanitary convention and showed by his conversation that he thinks in terms of bilateral balancing agreements to the exclusion of any other concept. As regards the visit of Fowler and Sappington he declared that he welcomed their presence in Argentina since it would give them the opportunity of realizing how necessary these restrictions are.
While I feel that the interview was on the whole discouraging and that Cantilo turned a deaf ear to the plea that his Government’s action might prejudice the success of present plans to work out a program for the expansion of trade, I gained the impression that our representations on behalf of individual businesses, particularly with respect to the injury resulting from the abruptness and severity of the Government’s measures, had some effect. I feel therefore that further representations on this point to Espil and Cantilo might prove helpful. On taking leave of Cantilo he requested Consul General Davis to furnish him with a memorandum supported by statistics setting forth for the consideration of the Ministries more specially concerned the arguments set forth.