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

No. 2554

The Secretary of State refers to the Ambassador’s confidential despatch no. 4954 of May 5, 1942 concerning procedure under Certificates of Necessity issued by the Central Bank, particularly as regards [Page 361]the extent to which the Embassy’s recommendations are followed at the Board of Economic Warfare in approving or disapproving export license applications supported by such certificates, and informs the Ambassador that his recommendations are followed in practically every case. There have been some very few exceptions, but the Embassy’s observations are of such definite value that the Department desires the Embassy to continue to make recommendations with regard to export license applications forwarded by the World Trade Division of the Department, and decisions of the Argentine section of the Reviews and Appeals Committee of the Office of Exports.

The Secretary of State further desires to inform the Ambassador that orders were duly issued by the competent authority of the Board to revoke the licenses referred to in the Embassy’s telegrams concerning cases acted on by the Special Argentine Committee between March 24 and April 16.

The Committee has raised a special point in connection with those cases in which the Embassy recommended disapproval on the grounds that the import is outside of the normal activities of the consignee. In certain of such cases it has developed that the World Trade Intelligence Division has very favorable reports concerning the consignees and the feeling of the Argentine Committee is that the single fact of the import not being “usual” is not a very substantial reason for denying such firm the small amounts of material requested. In this connection, the Committee feels that it is rather logical to assume that many reputable firms, owing to the difficulty of importing customary lines, are branching out into new lines. The Department is inclined to be of the same opinion as the Committee, although the comment of the Embassy is urgently desired in this respect. If the Embassy insists that the fact of a firm importing new lines is sufficient to warrant disapproval of the application, the Department will again inform the Committee in this regard.