835.796/201: Telegram

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

1178. Referring to Embassy’s 1169 of October 21, 7 p.m. Intava has received instructions from New York to restrict deliveries to Condor for immediate operating requirements only. Condor now has four storage tanks of 10,000 liters each at Quilmes Airport and is installing three more similar, while YPF is understood to be installing two for Lati.

There is possibility that when Condor hears of new Intava instructions YPF will be approached and will be tempted to sell enough to fill Condor and Lati tanks since such transaction would be difficult to check. Therefore it is believed that YPF should again be warned within the next few days before Condor makes its next request for Intava gasoline thereby learning of new Intava instructions. Before approaching YPF on this matter does Department wish to state its attitude regarding Phillips contract which can be transmitted to YPF at the same time? Prompt reply will be appreciated.