811.20 (D) Regulations/8407: Telegram
The Secretary of State to the Chargé in Argentina ( Reed )
1325. Since Department’s cable no. 1265 of August 22, officers of the Department have had informal conversations with García Arias55 and extensive discussions with Catinari, who Department understands has held responsible position in YPF for several years prior to joining Embassy here. Catinari has also spent several days in New York with Petroleum Supply Committee for Latin America acquainting himself with its methods of operation and the statistical oil supply situation in the various American republics concerned. The Petroleum Supply Committee has been very frank and cooperative in giving him an accurate picture of the situation and of aims, accomplishments and problems of the joint supply program. Upon his return from New York Catinari appeared wholly in favor of bringing YPF into this joint program on the basis of using Argentina’s importing tankers to assist in supplying other republics and perhaps exporting any oil produced in excess of present rate in return for materials from this country. He seemed strongly disposed to carry on these negotiations at this end and to refer them to Buenos Aires only for final approval.
[Page 415]The Department held a further meeting on September 3 with García Arias and Catinari at which the Minister asked certain questions which would enable him to place the entire question before the Argentine Government. The questions may be summarized as follows:
- (1)
- What political implications would be attached to Argentina’s action in becoming a member of the Pool? To this Department answered informally none whatever, beyond the perfectly obvious indication of willingness to assist in maintaining the essential economies of the other American republics.
- (2)
- What is the relation of the national petroleum committees and the Petroleum Supply Committee for Latin America in New York with the various governments? To this the Department replied that matters of broad policy were to be taken up between the governments at a high diplomatic level. Matters of execution would be handled through the Petroleum Supply Committee for Latin America and the national petroleum committees. The national petroleum committees in each case are set up as the government in question desires—usually with a governmental member as chairman.
- (3)
- Would this Government facilitate the acquisition by Argentina of the two Swedish tankers now under negotiation, if Argentina agreed to share their use with other republics? To this the Department answered that if Argentina were to participate fully in the petroleum supply arrangements, this Government would give appropriate assistance to Argentina in the safe passage of the two Swedish tankers.
- (4)
- Assuming that Argentina’s share in the so-called pool were to supply Uruguay’s requirements, what quantities of oil would be involved and what would be its source? To this the Department answered informally that Mr. Catinari had been furnished information concerning Uruguay’s needs.
- (5)
- If Argentina collaborated in the joint supply program in accordance with the principles which have been established for its guidance modified as might be agreed to take Argentina’s special circumstances into account, on what basis would this Government supply material for production and refining? To this the Department answered informally that this Government would be likely to make a comparable sacrifice by diverting material from extremely important uses here to Argentina, but that certain subsidiary questions arise in this connection concerning the allocation of this material among and its utilization by the several oil companies operating in Argentina.
Department is inclined to believe that these negotiations should remain in your hands and consequently will as far as possible confine itself to general statements at this end. Since the entire question is of high importance, however, you are requested to press the negotiations as urgently as is permissible. Moreover Department must be kept informed by telegram concerning discussions at your end to avoid confusion in dealings here over which Department does not have complete initiative.
- Argentine Chargé.↩