835.24/389½

Memorandum by the Adviser on Political Relations (Duggan) to the Under Secretary of State (Welles)

Mr. Welles: It would be consistent with the policy you and Ambassador Armour agreed upon at Rio de Janeiro, and which has since been followed by the Department, the BEW56 and the WPB,57 to give Argentina the reduced set of figures for second quarter allocations. These have been worked out, in consultation with our Embassy at Buenos Aires, on the basis of a policy of continuing to furnish those products necessary to maintain public health, essential transportation, et cetera, and of such other products which should not more appropriately be given to those countries which are collaborating more effectively in the war effort. The application of this policy has resulted [Page 334]in a curtailment of the amounts of tight commodities to be made available to Argentina during the second quarter.

I feel that if the policy which has been laid down is to be effective this new set of figures for second allocations should be approved.

Does this have your agreement?58

Laurence Duggan
  1. Board of Economic Warfare.
  2. War Production Board.
  3. Notation on memorandum by Mr. Welles: “O.K.”