810.74/549: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 2:18 p.m.]
2081. Department’s 1592, October 23, 4 p.m. The Embassy agrees that refusal of coded and cipher telegrams to and from all countries outside of American continent is more effective than closing Axis circuits, provided there is proper surveillance by Argentine authorities over messages sent en clair.
With regard to Transradio, it is not believed that local board will undertake such action on own initiative. German, Italian and French directors certainly will oppose. The three Argentine directors Aguirre, Becu and Huergo would hesitate to approve not because they necessarily oppose such action but because they are extremely reluctant to move without prior approval of Argentine Government. Despite remote foreign control Transradio has been regarded here as essentially Argentine, and the recent election of American manager was not received enthusiastically by some government officials. Consequently Transradio feels that it is particularly vulnerable.
Also it is extremely doubtful whether Transradio directors would vote such action without being assured that competitive companies will act concurrently. While Transradio now obtains large bulk of traffic with Continental Europe and Japan, code messages at least with Europe would be diverted to other companies unless they acted likewise.
Posts and Telegraphs Department apparently planning accounting inspectors in each communications company in endeavor to prevent messages to Axis countries regarding shipping movements. We do not see how this would be effective unless code and cipher facilities are refused to local Axis Embassies, but it is not yet known if Argentina will go this far.