611.3531/1546: Telegram

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

261. No. 192, June 7, 5 p.m., regarding corn marketing discussions. A memorandum received from the Foreign Office last night states:

“(1) The Argentine Government accepts the proposal that there be held in this capital immediate conversations for coordinating the action of Argentina and of the United States regarding all that pertains to the marketing in the best way possible of exportable surpluses of corn. (2) The Argentine Government in acceding to the holding of these conversations does so with the understanding that both Governments will avoid adopting any measure which may alter the normal development of commerce and especially that Argentine corn may maintain its position in the world market, which has been won under a regime of free competition and without the intervention of the extraneous factors which today are artificially modifying its quotations. (3) It is well known that the Argentine economy is based fundamentally on the possibility of marketing abroad the exportable surpluses of its agricultural—livestock industries. If [Page 491]the United States applies all the weight of its undeniable financial capacity to dislodge Argentine agriculture from markets which traditionally belong to it, a critical situation will be created for the country. The most recent operation of the sale of corn to the United Kingdom, which reached a volume of 20 million bushels, was executed at a price of 12 pesos 40 centavos per quintal C. I. F. under that of Plata corn. It should be borne in mind that the difference of price could only be reduced in a small degree (Spanish: reducir [?] a una cantidad poco importante) by virtue of the subsidies granted by the Government of the United States. (4) The Argentine Government considers that the success of the conversations to be held will signify a valuable accomplishment in the efforts which the United States of America has declared that it is disposed to apply toward constructing a more liberal international economic system capable of assuring for all countries an equality of opportunity in the markets of the world.”

Yesterday afternoon I handed the Under Secretary for Foreign Affairs a memorandum incorporating the substance of the enclosure to the Department’s instruction No. 278 of June 8.31

Armour
  1. Not printed.