Office of the Historian

865.85/800: Telegram

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

Washington, October 17, 1942—4 p.m.

1563. Your 1769, September 13; 1954, October 9; 1982, October 13.61 Discussions have been held with the Argentine Ambassador62 and Admiral Stewart on payments to be made in connection with the ships with the following results:

Admiral Stewart and the Ambassador phoned Fincati63 and Prebisch64 Wednesday or Thursday of this week and obtained their informal agreement:

(1)
not to make any payments out of this account (Art. 10, Italian-Argentine ship contract) to the Italians until Admiral Stewart’s return;
(2)
that a plan will be devised to control the funds of Delfino [(] plan tentatively suggested by Admiral Stewart is an allowance of about 2,000 pesos per month for living expenses and scrutiny of all other withdrawals from Delfino’s accounts);
(3)
that all payments on Inter-American plan ships (Esmeralda and Lloyd Argentine) are to be subject to informal approval of you and British Embassy; and
(4)
no payments to Vlasov65 in any form and possibly none to Iterman,66 depending upon your views.

The Argentines have been trying to move the Esmeralda out of Pernambuco, but because the ship is still on the British Statutory List, have been unable to obtain either certificate or agency service from Wilson.67 On the basis of Argentine notification to Inter-American Committee that ship was taken according to Inter-American plan and Stewart’s statements in points (3 & 4) above, British Embassy here is recommending to London delisting of Esmeralda and approval of Wilson as agent for ship. This is being done with no prejudice to future action by British and ourselves directly or through Inter-American Committee if above commitments (items 3 & 4) are not honored.

While the above proposals are not all that might be desired, they provide a possible basis for our future handling of these matters, and we have so indicated to the Argentine Embassy. The Argentine Ambassador here is satisfied with the arrangements and you are requested to send your comments.

Shipping agreement, copy of which will be forwarded to you shortly, was initialled by War Shipping Administration and Admiral Stewart yesterday.68 This agreement has no validity until financial matters relating to ships are satisfactorily settled.

All matters remain in abeyance until arrival next week in Argentina of Admiral Stewart.

Welles
  1. None printed.↩
  2. Felipe A. Espil.↩
  3. Adm. Mario Fincati, Argentine Minister of Marine.↩
  4. Raúl Prebisch, general manager, Banco Central de la República Argentina.↩
  5. Alexander Vlasov, Rumanian ship owner resident in Buenos Aires; owner of the ship Esmeralda.↩
  6. Isaac Gutman Iterman, Argentine capitalist holding a substantial interest in the Organización Comercial e Industrial Financiera Argentina.↩
  7. Presumably Capt. Robert A. Wilson, British Naval Attaché at Rio de Janeiro and Caracas.↩
  8. This agreement on shipping schedules and related matters was arranged by the War Shipping Administration and the Flota Mercante del Estado, an Argentine Government agency; agreement not printed.↩