810.74/629: Telegram

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

2394. My 2389, November 26, 8 p.m. I saw the Foreign Minister today and the results were most discouraging. He confirmed in detail what Gache told me yesterday. He tried to defend the Government’s position on the ground that under international law the rights [to] use the cipher was a privilege of which Axis Missions could not be completely deprived without risking a break in diplomatic relations. To my question whether he did not feel that Axis representatives had forfeited any rights that they might have even under international law by their actions now clearly disclosed he insisted that these have not yet been proved but that if it should later develop that German or any other Axis Embassies were actually implicated in subversive or espionage activities Government would then be prepared to take further action. In the meantime they proposed to limit the three Embassies to a maximum of probably not more than 100 code groups each per day. I told him that in my opinion this was entirely unsatisfactory and that the only solution that could accomplish purpose desired would be to forbid the use of [cable?] and radio outside of the continent to all Embassies for all cipher messages. He gave no indication, however, that the Government would be disposed to withdraw from its position unless some unexpected development arises. Therefore, I am afraid Government is determined to issue decree with above modifications.

The Minister of the Interior and another official with whom I have spoken made the confidential suggestion that our Government might consider having Transradio close some circuit to Axis countries. I intimated this had always been considered but that we would naturally have preferred to see such action taken by Argentine Government itself. In this connection I understand that proposed decree contains clause which would forbid private companies from closing any of Italian circuits without Government approval. If this is true it may present a serious difficulty for the companies particularly Transradio to take such action even if a majority of the directors be disposed to approve it.

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The British Ambassador saw the President this evening in last attempt to persuade him to adhere to the original terms [of] the decree. He left with the impression that something would be done but what, exactly, he did not gather.

Armour