Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

835.51/1530: Telegram

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

Buenos Aires, December 17, 1942—5 p.m.
[Received 6:55 p.m.]

2575. Department’s instruction 2895, August 3, 1942; 2789, July 17, 1942;³⁵ and Embassy’s 2382, November 25, 10 p.m., 1942. In conversations yesterday with officials of the Central Bank regarding Argentine financial controls, officials of the Embassy pointed out that the remittance of 1,909,000 pesos to Germany, Italy, France (occupied and unoccupied) and occupied countries during August, September, October and November this year for family aid was contrary to Resolution I of the Washington Conference. Central Bank officials insisted that this was not true and that they had made their position clear on this point to the Treasury during the Conference and that their position in general on financial controls was clearly outlined in a memorandum handed to Foley on July 2, 1942.³⁶ They vigorously maintained that the entire memorandum constituted the interpretation of the reservation finally drafted by Argentina to the resolutions passed at the Conference, and that such memorandum was so terminated [construed?] by representatives of Department and Treasury. Gagneux³⁷ stated that he had fully explained Argentina position to Collado,³⁸ White, Pehle, and Bernstein.³⁹ Central Bank admits that this memorandum was not generally known to other delegates at the Conference as a reservation but insists that a gentleman’s agreement was made between themselves, Department and Treasury. Embassy does not so understand the document as written nor as commented upon in the instruction transmitting it as being a reservation. Bank considers such memorandum a reservation, has acted upon that basis in the past and intends to act upon that basis in the future.

Please discuss with Treasury and telegraph comments relative to Central Bank position indicated above as soon as possible because conversations with bank cannot progress until point clarified. If Argentine understanding is not in accord with that of Department and Treasury, please phrase telegram so that paraphrase may be given to Central Bank.

Armour

35. Neither printed.
36. Not printed; Edward H. Foley was General Counsel of the Department of the Treasury. A copy of the memorandum was submitted also to the Department of State.
37. Edmundo Gagneux, Assistant General Manager of the Central Bank.
38. Emilio G. Collado, Executive Secretary of the Board of Economic Operations of the Department of State.
39. Harry D. White and John W. Pehle, Assistants to the Secretary of the Treasury; Bernard Bernstein, Assistant General Counsel, Department of the Treasury.