641.1115/40: Telegram

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

152. The following is a summary of a memorandum dated May 20 from the Foreign Office protesting against the sale of 20,000,000 bushels of corn under an American Government subsidy arrangement. Stating that the Argentine Government would not ordinarily have objected to a normal sale, exception is taken to the procedure followed in this case because of the alleged Government assistance to the exporter. The following excerpt is quoted in translation:

“The frequent advocacy of the United States Government of closer cooperation between the American countries has always found a sympathetic echo in Argentina whose Government, as Your Excellency is well aware, is convinced that the first step towards strengthened continental harmony should be the improvement of mutual economic relations, the elimination of artificial barriers to commerce, and the suppression of certain export practices which have been censored by international congresses.”

After pointing out that the sale of this quantity of corn, although of little importance to the United States, means much to Argentina confronted at present with the problem of disposing of an unusually large corn crop in the face of reduced markets and the lack of storage facilities, it expresses regret that the United States Government has found it necessary to resort to a measure which is not considered one conducive to good relations in the Americas. The memorandum concludes with an expression of hope that in the mutual interests of the two countries the United States Government will not continue a policy that harms so greatly Argentina’s internal economy and purchasing power.