611.3531/891: Telegram

The Acting Secretary of State to the Ambassador in Argentina ( Armour )

131. Your 132, August 12, 1 p.m.18 You should transmit the following communication immediately to the Argentine authorities:

  • “1. The careful, sympathetic and prompt consideration which has been given to the proposals of the Government of the United States is deeply appreciated, and the apparent agreement between the two Governments [Page 252] as to the general basis for the negotiation of a trade agreement is a source of gratification.
  • 2. With reference to the application of the proposed method of quantitative control by commodities, the informal translation of the Argentine Government’s remarks in regard to this matter might be taken to imply that the percentual share of the United States in a given quota might be determined or changed without reference to a representative base period, whereas the proposal of the Government of the United States contemplates that the regulation of imports would be effected ordinarily, in the case of any product, through a change in the total permitted imports from all sources, the percentual share of the United States normally remaining unchanged. The proposal of the Government of the United States also contemplates, however, the possibility of change in a base period, which might result in a change in the percentual share of the United States in the total permitted imports of a particular product, if the trend of the trade or other factors should indicate that the base period originally chosen is no longer truly representative. With reference to the concessions to be included in the proposed agreement, it is understood of course that specific concessions, including the amount of reduction in duties, cannot be determined in advance of negotiations and prior to public notice and hearings in the United States. The Government of the United States considers that on this understanding the interchange of views between the two Governments affords sufficient prospect that if negotiations were undertaken they could be brought to a mutually satisfactory conclusion. Accordingly, the Government of the United States is prepared to issue public notice of intention to conclude a reciprocal trade agreement with the Government of Argentina.
  • 3. If agreeable to the Government of Argentina, the public notice will, subject to confirmation, be issued on August 23. The time allowed for written briefs will be 4 weeks, and public hearings will begin on October 9. Shortly thereafter, definitive negotiations in regard to specific tariff concessions can begin. Meanwhile, work on the general provisions of the agreement could proceed.
  • 4. The Government of the United States would be gratified if the negotiations could take place in Washington and if an Argentine delegation could arrive about the first of October.”

If the Argentine officials should request an explanation of the first two sentences of point 2 above, you should make use of the pertinent parts of this Government’s memorandum of June 28, 1939.

Request no publicity pending public notice. In view of the time urgency, it would be helpful if discussions of the general provisions could start immediately. These could be carried on with the Argentine Embassy here. It is desirable to avoid the arrival of a trade delegation before the close of the period allowed for written briefs, probably September 23. You might say that this would not apply of course to the early return of Irigoyen, who could assist in the general provisions discussions.

Moore
  1. Not printed.