835.24/822: Telegram
The Secretary of State to the Ambassador in Argentina (Armour)
1739. Your 2142, October 31, 2192, November 6, 2236, November 11, and Department’s airgram A–328, November 6.79 The schedule of exports in Department’s memorandum80 is based upon probable availability of materials. In this respect it differs from the Central Bank schedule. The figure for iron and steel in the Department’s memorandum—5000 tons monthly—is maximum. Figure of 4000 tons of tinplate is also maximum. Inasmuch as the plans worked out with the Flota here were to move 40,000 tons of Argentine products to the United States each month, it was necessary for the Department to determine whether it would be possible to provide sufficient United States merchandise to load these boats for the return trip. The schedule contained in the memorandum indicates it is possible, although the distribution may not be according to the Central Bank’s economic desires. The 6500 tons of newsprint is important and it is believed that it is within the Flota’s capabilities to move this amount if the northbound movement ever attains the 40,000–ton level. Of course, drastic measures by the newspapers to reduce their consumption would in turn reduce the necessity of moving 6500 tons a month. The Department [Page 426] believes such action on the part of the newspapers would be desirable to the extent that it does not interfere with our political desires.
It will be noted from the schedule that after iron, steel, tinplate, newsprint and coal allocations have been taken care of, this leaves 7500 tons of miscellaneous unallocated commodities, the distribution of which is left up to the Central Bank in accordance with its economic plans. Exceptions could arise where needs of Argentine industries contributing directly to the war effort are involved. Department fully understands the reluctance of the Central Bank and the Flota to provide for more than 1000 tons of newsprint per month. However, you should seek by every means possible to increase the 1000–ton figure of the Central Bank as much as possible, it being understood that the difference between the Central Bank’s allotment and your revised minimum requirements can always be carried on Dodero’s81 or American ships going to Uruguay. Naturally, any shipments to Argentina on American vessels are effected at a sacrifice to the war effort, as it reduces our ability to supply friendly countries. It is obvious that, while our licensing procedure has been fully explained to you, our control over the movement of a certain portion of the shipping to move newsprint will insure equitable distribution among the friendly Argentine press.
Taking into consideration Argentina’s present stocks of tinplate, it appears that 4000 tons per month is excessive and will be sharply reduced. Consequently, the Central Bank will have that extra tonnage to dispose of among what it considers vital unallocated commodities. Naturally, such a reduction will also increase the ability of the Flota to carry the newsprint.