835.24/352: Telegram

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

513. Embassy’s 477, March 12, midnight. The Department is convinced that the only way in which the situation described can be rectified is to call in all outstanding Argentine licenses issued between October 10 and March 1 and refer them to the Embassy for recommendation; and the Department is prepared to request the Board of Economic Warfare to do this. (By Current Controls Bulletin No. 11 of March 14,68 all individual export licenses dated prior to October 10 were revoked effective midnight April 10 and all outstanding licenses issued on or after October 10 will be valid for 6 months only).

As similar action is not at present contemplated with regard to any other American Republic, and since the Department is most anxious that no action should be taken which might give the Argentine Government grounds for alleging pressure or discrimination, the Department is, however, unwilling to make the request without the knowledge and consent of the Argentine Government.

Please take this matter up with the Foreign Office making it clear that the proposed course is the only practicable way in which speculators and other undesirable consignees can be eliminated.

You may add that the Argentine Embassy has informally suggested that licenses be recalled as outlined in order to permit its Government to regularize its own internal procedure.

  1. The Current Controls Bulletin was issued periodically by the Office of Export Control of the Board of Economic Warfare.