740.00112A European War, 1939/17071: Airgram

The Secretary of State to the Chargé in Argentina (Reed)

A–193. Your airgram A–168, September 4, 6:10 p.m.12 In view of the information contained in your airgram under reference, it would appear that insistence upon the desired undertakings would [Page 499] have adverse political repercussions. Consequently, the Department is disposed to let the matter drop.

The Department upon re-examining the present attitude of the Argentine Government and the present administration of Argentine financial controls suggests that you approach the Central Bank and inform them that as satisfactory undertakings cannot be obtained from the Banco de la Provincia, the Banco de Italia y Río de la Plata, and the Banco Francés del Río de la Plata, and as the Central Bank does not wish the facilities of the Export-Import Bank to be made available to any Argentine banks unless these banks are included, this Government after carefully considering the problem will withdraw the offer of the Export-Import Bank credit arrangements made to any banks in Argentina and regard the present negotiations with all banks in Argentina as closed.

  1. Not printed; it replied to the Department’s airgram A–103, August 28, p. 494. In this reply the Chargé stated: “The Embassy feels that to push further at this time for more comprehensive commitments or improvements in form in the written undertakings would entail very definite risks of adverse repercussions that would be far out of proportion to the possible increased benefits.” (740.00112A European War, 1939/17071).