810.74/663a Suppl.: Telegram

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

2017. Hallauer, as Secretary of the Consortium could presumably not instruct Transradio in the sense indicated in your 2588, December 18, 2 p.m., without an explicit directive to that effect from the trustees themselves. This would necessitate another trustees’ meeting, which hardly seems practicable. However, Harbord has consented to having his message addressed to Beccar Varela, who represents RCA, instead of to Hayes. There appears to be no reason why Beccar Varela, acting on this recommendation from the interests which he represents, could not ask for a directors’ meeting for the purpose of considering the recommendation. It is understood that the representative of the British interests would cooperate. See your 1883, September 29, 7 p.m.21

The Department is agreeable to having the Argentine authorities notified in advance that such a meeting was going to be held to consider such a proposal. It recognizes that the Argentine authorities may forbid the contemplated action, but feels that nothing would be lost thereby and that something might be gained. The Argentine Government would be placed in the position of taking a positive action in opposition to a measure designed to strengthen hemisphere defense in the spirit of the Rio Resolutions. Since the Board would presumably not take action contrary to the expressed instructions of the Argentine Government, the company would presumably not expose itself to punitive measures.

The Chilean Government did not take the initiative in the action of Transradio Chilena. It refrained from opposing that action, and after it had been taken, Chilean authorities indirectly indicated their approval in public statements relating to the Under Secretary’s Boston address.

The Department is not at present in a position to make a positive reply to the suggestion contained in the last paragraph of your telegram under reference.

Please deliver Harbord’s message to Beccar Varela, indicating if it seems appropriate that the American company has reason to be embarrassed by its participation in an enterprise that renders such service to the Axis as enables it to destroy ships and personnel of the United Nations. If you feel there are decided objections to such a course, you should defer action, informing the Department and awaiting further instructions.

Hull
  1. Not printed.