800.857/662: Telegram

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

605. Your 728, April 22, 6 p.m. The materials which this Government has allocated to Argentine shipyards are for the purpose of repairing ships of friendly nations—i.e. those of the United Nations and the American republics. The allocation of steel plates to Mihanovich,42 for example, was made on the basis of the size of the yard and the probable amount of business.

Many, if not all, of the countries referred to above are unable to replace materials which are utilized in the repair of their boats. The United States has recognized this fact and has acted accordingly in the matter of supplying Argentina.

If this new measure taken by Argentina hampers or restricts in any way the repair of ships which are working directly or indirectly in the United Nation war effort, this Government will be forced to divert repair materials and ships to other ports where such restrictions do not exist.

The Department recently took extraordinary action to obtain an allocation, a priority and an export license on 800 tons of steel plates for Mihanovich. The 800 tons have not yet been shipped and will not be released until appropriate assurances have been obtained from Argentina that the materials we supply will be made available to all ships of friendly nations without the obligation of replacement. Furthermore, it is not desirable to have Argentina force ships in need of repairs to proceed to other ports where repair facilities might be less adequate, solely for the purpose of maintaining in Argentina a hoard of materials.

You should obtain promptly these assurances in any form you deem appropriate, either jointly with the British Embassy or separately.

Hull
  1. Cia. Argentina de Navegación Mihanovich, Ltda.