835.24/234a

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

No. 1493

The Secretary of State refers to the Department’s telegram no. 1003 of December 2, 10 p.m.,24 and transmits for the information of the Embassy copies of the texts of cash basis lend-lease agreement handed to the Argentine Ambassador August 18, 1941, and of the reduced payment lend-lease agreement handed to the Argentine Ambassador, December 1, 1941.

[Enclosure 1]

Draft Cash Basis Lend-Lease Agreement, Handed to the Argentine Ambassador, August 18, 1941

Whereas the United States of America and the Argentine Republic declare that in conformity with the principles set forth in the Declaration of Lima, approved at the Eighth International Conference of American States on December 24, 1938,25 they, together with all the other American republics, are united in the defense of the Americas;

And whereas the President of the United States of America has determined, pursuant to the Act of the Congress of the United States of America of March 11, 1941, that the defense of each of the American republics is vital to the defense of all of them, and for that reason the United States of America proposes to provide certain defense articles and defense information to the Argentine Republic;

The undersigned, being duly authorized for that purpose, have agreed as follows:

Article I

The United States of America will supply the Argentine Republic with such defense articles and defense information as the President of the United States of America shall authorize to be transferred.

[Page 331]

Article II

The Argentine Republic will, until further notice, pay in advance for all defense articles and defense information requested by it and the transfer of which has been authorized. The United States of America, however, reserves the right at any time to suspend, defer, or stop deliveries of such articles or information whenever in the opinion of the President further deliveries are not consistent with the needs of the defense of the United States of America.

Records shall be kept of all defense articles transferred under this Agreement, and not less than every ninety days schedules of such defense articles shall be exchanged and reviewed.

Article III

The Argentine Republic will not, without the consent of the President of the United States of America, transfer title to or possession of any defense article or defense information transferred to the Argentine Republic under this Agreement, or permit its use by anyone not an officer, employee, or agent of the Argentine Republic.

Article IV

If, as a result of the transfer to the Argentine Republic of any defense articles or defense information, it becomes necessary for the Argentine Republic to take any action or make any payment in order fully to protect any of the rights of a citizen of the United States of America who has patent rights in and to any such article or information, the Argentine Republic will take such action or make such payment when requested to do so by the President of the United States of America.

Article V

This Agreement shall continue in force from the date on which it is signed until a date agreed upon between the two Governments.

Signed and sealed at Washington in duplicate in the English and Spanish languages this . . . . . day of . . . . . . . . 1941.
On Behalf of the United States of America
__________________________________
(Title)
On Behalf of the Argentine Republic
__________________________________
(Title)
[Page 332]
[Enclosure 2]

Draft Reduced Payment Lend-Lease Agreement, Handed to the Argentine Ambassador, December 1, 1941

Whereas the United States of America and the Argentine Republic declare that in conformity with the principles set forth in the Declaration of Lima, approved at the Eighth International Conference of American States on December 24, 1938, they, together with all the other American republics, are united in the defense of the Americas;

And whereas the President of the United States of America, pursuant to the Act of the Congress of the United States of America of March 11, 1941, and the President of the Argentine Republic have determined that the defense of each of the American republics is vital to the defense of all of them, and for that reason the United States of America proposes to provide certain defense articles and defense information to the Argentine Republic;

The undersigned, being duly authorized for that purpose, have agreed as follows:

Article I

The United States of America proposes to transfer to the Argentine Republic under the terms of this Agreement armaments and munitions of war to a total value of about $66,000,000. The United States of America proposes to begin deliveries immediately and to continue deliveries as expeditiously as practicable during the coming twelve months to an approximate total value of $15,000,000 for use by the Argentine Army and an approximate total value of $1,000,000 for use by the Argentine Navy.

In conformity, however, with the Act of the Congress of the United States of America of March 11, 1941, the United States of America reserves the right at any time to suspend, defer, or stop deliveries whenever, in the opinion of the President of the United States of America, further deliveries are not consistent with the needs of the defense of the United States of America or the Western Hemisphere; and the Argentine Republic similarly reserves the right to suspend, defer, or stop acceptance of deliveries under the present agreement, when, in the opinion of the President of the Argentine Republic, the defense needs of the Argentine Republic or the Western Hemisphere are not served by continuance of the deliveries.

Article II

Records shall be kept of all defense articles transferred under this Agreement, and not less than every ninety days schedules of such defense articles shall be exchanged and reviewed.

[Page 333]

The Government of the United States of America agrees to accord to the Government of the Argentine Republic a reduction of 45.45 percent in the total cost of the materials that will be delivered in compliance with the stipulations of the present agreement; and the Government of the Argentine Republic promises to pay in dollars into the Treasury of the United States of America 54.54 percent of the total cost of the materials delivered. The Argentine Republic shall not be required to pay

  • more than a total of $6,000,000 before July 1, 1942,
  • more than a total of $12,000,000 before July 1, 1943,
  • more than a total of $18,000,000 before July 1, 1944,
  • more than a total of $24,000,000 before July 1, 1945,
  • more than a total of $30,000,000 before July 1, 1946, or
  • more than a total of $36,000,000 before July 1, 1947.

Article III

The Governments of the Argentine Republic and of the United States of America agree to cooperate for the conclusion of just and equitable agreements in conformity with Resolution XXV on Economic and Financial Cooperation approved at the Second Consultative Meeting of the Ministers of Foreign Affairs of the American Republics held at Habana in July 1940 and to cooperate to alleviate the sufferings caused by the war, so far as possible within the limit of the available resources of the Contracting Parties.

Article IV

Should circumstances arise in which the United States of America in its own defense or in the defense of the Americas shall require defense articles or defense information which the Argentine Republic is in a position to supply, the Argentine Republic will make such defense articles and defense information available to the United States of America, to the extent possible without harm to its economy and under terms to be agreed upon.

Article V

The Argentine Republic undertakes that it will not, without the consent of the President of the United States of America, transfer title to or possession of any defense article or defense information received under this Agreement, or permit its use by anyone not an officer, employee, or agent of the Argentine Republic.

Similarly, the United States of America undertakes that it will not without the consent of the President of the Argentine Republic, transfer title to or possession of any defense article or defense information received in accordance with Article IV of this Agreement, or permit its use by anyone not an officer, employee, or agent of the United States of America.

[Page 334]

Article VI

If, as a result of the transfer to the Argentine Republic of any defense article or defense information, it is necessary for the Argentine Republic to take any action or make any payment in order fully to protect any of the rights of any citizen of the United States of America who has patent rights in and to any such defense article or information, the Argentine Republic will do so, when so requested by the President of the United States of America.

Similarly, if, as a result of the transfer to the United States of America of any defense article or defense information, it is necessary for the United States of America to take any action or make any payment in order fully to protect any of the rights of any citizen of the Argentine Republic who has patent rights in and to any such defense article or information, the United States of America will do so, when so requested by the President of the Argentine Republic.

Article VII

This Agreement shall continue in force from the date on which it is signed until a date agreed upon between the two Governments.

Signed and sealed at Washington in duplicate in the English and Spanish languages this . . . . . day of . . . . . . . . 1941.
On Behalf of the United States of America
__________________________________
(Title)
On Behalf of the Argentine Republic
__________________________________
(Title)
_________
  1. Not printed.
  2. For text, see Report of the Delegation of the United States of America to the Eighth International Conference of American States, Lima, Peru, December 9–27, 1988 (Washington, Government Printing Office, 1941), p. 189; for correspondence concerning this Conference, see Foreign Relations, 1938, vol. v, pp. 1 ff.