811.20 Defense (M) Argentina/157: Telegram

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

509. William Baum Company of New York has asked Department for an expression of opinion concerning proposed sale of 360,000 tons of Argentine scrap to Bethlehem Steel in exchange for 60,000 tons of manufactured steel. Baum states that Crespo12 is associated with this offer. Department will inform Baum that maximum available [Page 311]quantities of manufactured steel are established by quarterly allocations. Whether or not Crespo is in a position to arrange export of scrap, the fact that this offer has been made is an indication that there are probably substantial quantities of scrap in Argentina which cannot be used there.

Reference your 623 [523] of March 20.13 Survey of available scrap will undoubtedly take a long time and need is increasing here. Department would therefore prefer not to let this matter drop unless you are convinced that to press negotiations now would prejudice our chances of eventually obtaining scrap from Argentina. Please explain in further detail why you recommend deferment of negotiations.

Welles
  1. Eduardo Crespo, President of the Banco Municipal de Préstamos.
  2. Not printed.