611.3531/1097
The Ambassador in Argentina (Armour) to the Secretary of State
[Received October 7.]
Sir: Referring to the Department’s telegram No. 165 of September 23, 4 [3] p.m. in regard to the desire of the Argentine Government to have certain articles added to the list of products concerning which [Page 268] the United States would consider granting tariff concessions in the proposed trade agreement, I have the honor to enclose a copy of a note,34 which, in accordance with the Department’s instruction aforementioned, I addressed to the Minister for Foreign Affairs on September 26th last.
With respect to the progress of the trade-agreement negotiations here, the Embassy and the Consulate General feel with increasing apprehension that there are certain basic principles of the general provisions on which there is not yet agreement and on which, indeed, we may encounter some difficulty. Apart from the position of the Government here that contiguous countries of Argentina be excepted in the application of the most-favored-nation principle, there is some reason to suppose that Argentina is not really contemplating any very radical departure from its bilateral trade policy, at least as long as the European war continues. Another matter of concern is the apparent intention of the Argentine Government, as expressed by members of its negotiating sub-committee, to press for a transitional period to precede the granting to the United States of unconditional most-favored-nation treatment. As evidence of these positions, I enclose a copy of a memorandum35 of a conversation yesterday with Dr. Alberto Bonf ante, Assistant Chief of the Division of Economic and Consular Affairs in the Ministry of Foreign Affairs. I am also enclosing a copy of a memorandum35 of comments on the matter prepared by the Consul General and dated yesterday.
The members of our sub-committee, as well as myself, are using every opportunity to impress upon the Argentine Government the imperative need to define clearly and promptly its position on these various matters and the need to come to an agreement on at least the fundamentals before our delegation departs from the United States. I stressed these points in conversations with the Foreign Minister on September 25th and with the Under Secretary yesterday afternoon. Dr. Torriani, Director of the Division of Economic and Consular Affairs, has arranged for Consul Ravndal and Mr. Randall, Assistant Commercial Attaché, to have a conversation this afternoon with Sr. Irigoyen, Financial Counselor of the Argentine Embassy in Washington, now in Buenos Aires, and Messrs. Ravndal and Randall intend to take this opportunity to ascertain more definitely just what the Government here now has in mind with respect to several of these basic principles of the trade agreement.
In view of the above, the Department may wish to withhold making public the exact time when it is contemplated to have the delegation [Page 269] sail for Argentina. We would obviously be placed at a disadvantage were the delegation to sail before we have come to a clear agreement on the points to which I have referred.
Respectfully yours,