800.6363/1207: Telegram

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

1344. Embassy’s 1329, June 14, 6 p.m. Storni’s premature announcement has upset Uruguayans who are naturally concerned if Argentine crude must be handled by Ancap Refinery. Clover suggested to Dwyre today by telephone that Uruguayan worry is premature, as the agreement is not yet completed, and that in due course Ancap will receive all necessary consideration.

A Washington story fortunately killed by local UP manager who has been kept informed by the Embassy enlarged upon theme “unofficial observers consider it unlikely that the United States would be in a position to allot Argentina 36,000 tons of equipment”. Story plays up Mexican, Brazilian and Venezuelan requirements as being sure to have preference and that these countries are short.

In view of all of this and also the Argentine situation the Embassy considers it highly desirable to receive at the Department’s earliest convenience a reply to Embassy’s telegram 1165, June 2, 6 p.m. There is no doubt in my mind that if we should refuse—or even show reluctance—to do as much for the present Government as we were prepared to do for the former Government this would cause a most unfortunate impression.

Armour