811.20 Defense (M) Argentina/19
The Ambassador in Argentina (Armour) to the Secretary of
State
No. 3131
Buenos
Aires, September 19, 1941.
[Received
September 26.]
Sir: I have the honor to refer to the Embassy’s
telegram No. 941 of September 10, 1941, 9:00 a.m.93 and transmit herewith copies of
memorandum concerning the purchase program which was submitted to the
Foreign Office on September 8 and also a copy of the memorandum which
was submitted by the British Ambassador to the Foreign Office on
September 3. It will be noted in the Embassy’s memorandum that reference
was made to the aide-mémoire transmitted to the
Foreign Office on July 2, 1941, relating to the same subject, to which
was attached a list of products which may be included
[Page 373]
in the proposed purchase program as
contained in the Department’s telegram No. 378 of June 23, 1941, 11:00
p.m.94 The Embassy has not
yet received any reply from the Foreign Office as regards the purchase
program since transmitting the memorandum of September 8, nor has there
been any reaction in authoritative circles that would indicate that the
program is having serious consideration, other than Executive Decree No.
97,752, which was issued on August 21, 1941,95 restricting
the exports of certain minerals. In this connection, the Embassy has
been somewhat chagrined to learn that since this decree became
effective, including restrictions on the exportation of wolfram ore, it
has been admitted that licenses have been granted for the shipment of
more than 50 tons of wolfram ore to Japan.
Respectfully yours,
For the Ambassador:
Thomas L.
Hughes
Commercial
Attaché
[Enclosure 1]
The British Embassy in
Argentina to the Argentine Foreign
Office
[Buenos
Aires,] September 3, 1941.
Memorandum
- 1.
- With the hope of arriving at a favorable solution of the
problems affecting international trade between Argentina, the
United States and Great Britain, the U.S.G. and H.M.G. have
together reviewed the two lists of purchases of Argentine
products which the British Empire and the U.S. propose to make,
or to guarantee, during the succeeding 12 months period.
- 2.
- These two lists are largely complementary and in total cover a
wide range of Argentine products; they will guarantee to the
Argentine the disposal of all, or at least the greater portion,
of the exportable surplus of most of her principal products.
Thus, while the offer already put forward by the U.S.G. will
provide a guarantee of the disposal in the U.S. (in so far as
the products in question are not bought by the British Empire or
by Latin American countries) of quantities representing
approximately the normal exportable surplus of wool, hides,
minerals, quebracho and glycerine, H.M.G. are prepared to
purchase, subject to agreement on prices and to the exigencies
of shipping, by far the greater proportion of the production of
meat and animal fats, together with substantial quantities of
wheat, flake eggs, fertilizers, casein, etc. These British
purchases,
[Page 374]
together
with British Empire purchases of hides and quebracho, may be
anticipated to involve a total sum of approximately 42 to 44
million pounds sterling.
- 3.
- In view of the wide range of this joint purchasing program,
which will go far to minimize the inevitable dislocation of
Argentine trade consequent on the war, H.M.G. takes this
opportunity of expressing the anxiety, which they share with the
U.S.G., to secure the conservation of the products in question
and they therefore wish to lend their fullest support to the
proposals already put forward by the U.S.G. that the export of
these products from Argentina should be so controlled as to
ensure that they shall not be directed to destinations outside
the United States, the British Empire and other American
Republics having a similar system of export control.
[Enclosure 2]
The American Embassy in
Argentina to the Argentine Foreign
Office
Memorandum
With a view to offering a favorable solution of the problems
affecting the foreign trade of Argentina as a result of the
dislocation of markets caused by the exigencies of the international
situation, the Embassy of the United States of America has the honor
to submit a proposal for the purchase, or a guarantee of purchase,
of certain Argentine products by the Government of the United States
of America for a period of one year. The situation has been
similarly reviewed by the British Government who also propose to
submit to the Argentine Government a program of purchases covering a
complementary list of products. These proposals of the two
governments cover such a wide range of Argentine products that it is
believed that if an agreement may be reached between the respective
governments concerned, there is offered to Argentina a guarantee for
the disposal of the greater portion of the exportable surplus of
most of its principal products.
On July 2, 1941 an aide-mémoire was
transmitted to the Foreign Office, stating that the Government of
the United States, through the Federal Loan Agency, was prepared to
acquire specified Argentine products under certain conditions, of
which the most important is that the Argentine Government would
restrict the exportation of such products to the British
Commonwealth of Nations, the United States and other American
republics having a similar system of export control.
By Executive Decree No. 97,752 of August 21, 1941 the Argentine
Government specifically imposed restrictions on the export of
certain
[Page 375]
of the products
set forth in the Embassy’s Aide-Mémoire of
July 2, 1941. It is hoped that conversations may be undertaken at an
early date which may lead to the conclusion of an agreement between
the governments concerned, putting into effect the complete program
envisaged.
Buenos Aires,
September 8,
1941.
[Enclosure 3]
The American Embassy in
Argentina to the Argentine Foreign
Office
Products Which May Be Purchased by the United
States
Glycerin:
The United States Government, through the Federal Loan Agency, is
interested in the purchase of the entire exportable surplus of
Argentine glycerin for a period of one year at a price to be
mutually agreed upon.
Minerals:
Beryl ore, mica, vanadium, antimony, manganese,
fluorspar, and tin: The United
States Government, through the Federal Loan Agency, is interested in
effecting an arrangement for the purchase of all of these products
in the same form of agreement as that proposed for glycerin.
Beryllium oxide:
The United States Government, through the Federal Loan Agency, is
prepared to enter into negotiations for the purchase of the entire
output of beryllium oxide in Argentina for a period of two years
with the top limit of about 100 tons a year.
Hides and Skins:
The Agency is willing to undertake negotiations for the purchase of
the entire exportable surplus of Argentine hides and skins of the
higher qualities which shall not be acquired by private U. S.
importers for the period of one year with the top limit of the
Agency’s obligations with respect to these products to be stated in
the proposed agreement. It is understood that the average annual
exportable surplus of hides and skins of Argentina for the years
1934–38 was 7,600,000 hides, or approximately 159,000 metric
tons.
[Page 376]
Wool:
The Agency has manifested an interest in the purchase of the entire
exportable surplus of Argentine wool of suitable grades which shall
not be acquired by private U. S. importers during 1941–42
season.
Quebracho:
The Agency proposes to enter into negotiations for the purchase of a
quantity of quebracho extract approximating 15,000 tons above the
1941 purchases which are estimated to be about 94,000 tons.
Certain departments of the U. S. Government are making studies with
regard to making purchases in Argentina of castor seed, borax,
casein, and tallow, but at present no definite negotiations can be
undertaken regarding these products.
The purchase by the U. S. Government of any or all of the products
mentioned in the foregoing will be contingent upon restrictions to
be imposed on the export of these products by the Argentine
Government to any and all countries with the exception of the United
States, Great Britain, and other Latin American Republics having
parallel systems of export control.
