800.857/662: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 9:20 p.m.]
728. By decree promulgated April 20 published by yesterday’s press merchant vessels of foreign registry may not be repaired in Argentina without prior authorization from the Ministry of Marine. In determining whether or not authorization shall be granted the Ministry will take into consideration the need for the repairs and their cost.
The decree provides that repairs will be authorized on the express condition that the owners of the vessels import into Argentina within a period of 6 months materials of the same quantity and quality as those employed. As a guarantee of the importation of the new materials the owners will be obliged to deposit in the Central Bank to the order of the Ministry of Marine an amount equal to the total value of the materials used. If the owners fail to comply with this undertaking the deposit will be forfeited to the Government.
It is also provided that the contracts for the repairs to foreign vessels must be submitted to the Ministry of Marine and that work may not be commenced until the corresponding permit has been issued.
The official justification for this measure is that many foreign ships have been repaired locally utilizing materials which under present conditions are exceedingly difficult if not impossible to replace owing to the fact that all countries have restricted their exportation.
The British Embassy here is desirous of acting jointly with us in the event our respective governments should decide to take action in this manner and I should therefore appreciate receiving the views of the Department.