835.24/825½
Memorandum by the Chief of the American Hemisphere Exports Office (Ravndal) to the Executive Secretary, Board of Economic Operations (Collado)
Mr. Collado: With reference to the question raised in your memorandum of October 2794 regarding the implementation of our policy towards Argentina, it may be explained that allocations for Argentina are determined on the basis of parity with other American republics. After approval of the proposed allocations by the American Requirements Committee in the past AE,95 in consultation with a member of the Requirements Branch of BEW, has arbitrarily reduced Argentine allocations by 50 percent. However, as you will recall, beginning with the fourth quarter the iron and steel allocation for Argentina was [Page 369] sharply reduced to approximately 5,000 tons monthly. Because of the very small tonnage involved (1,427 tons) and the fact that a 50 percent reduction would seriously cripple industries employing a relatively large number of workers, the Embassy was instructed to use its judgment in making any reductions in allocations of commodities other than iron and steel and report to the Department the action taken.
For example, in determining the acetone allocation, supplies were almost restricted to the rayon industry and an arbitrary cut of 50 percent would be reflected in a corresponding curtailment of the operations of the industry. It was therefore felt that Mr. Armour would be in a better position to evaluate the implications of any reduction that might be made. Likewise, a reduction in the allocation of chromium chemicals which are used largely for tanning leather would bring about a curtailment of activities in that industry and it was felt that the Embassy would be better qualified to determine the extent to which such a curtailment would be advisable.