835.796/265
The Ambassador in Argentina (Armour) to the Secretary of State
[Received March 24, 1942.]
Sir: With reference to the Department’s telegram no. 322 of March 7, 3 p.m., and referring also to the Embassy’s despatch no. 4422 of March 134 in regard to the possible purchase by Argentina of airplanes and spare parts owned by the Air France, I have the honor to report that this subject was discussed with the Central Bank some days ago and again today. Dr. Edgardo Grumbach, head of the foreign-exchange department of the Central Bank, stated today that his institution had no knowledge whatever of the negotiations in question but had addressed a communication to the Ministry of Finance inquiring [Page 432] in the matter and suggesting that the proceeds of any such transaction be blocked as in the case of the recent purchase of the Italian ships.
A report is circulating here, although it has not been confirmed, that the son of Acting President Castillo is involved in these transactions, perhaps through the Corporación Sud Americana de Servicios Aéreos S. A., in which he, as well as a former law partner of the Acting President, has an interest (as reported in the Embassy’s despatch no. 4383 of March 11, 1942).
Respectfully yours,
Counselor of Embassy
- Latter not printed.↩