835.796/193: Telegram

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

842. Your 1129, October 13, 5 p.m., and 1169, October 21, 7 p.m. With respect to your inquiry whether the Phillips Petroleum Company would, under certain conditions, be permitted to proceed with its contract with YPF, it may be stated that the manufacture of high octane gasoline requires highly specialized machinery all of which for some time to come is earmarked for urgent defense needs.

It is accordingly evident that it will not be feasible in the near future to provide Argentina with the desired manufacturing facilities irrespective of whether YPF undertakes a commitment to withhold fuel from Axis airlines.