833.24/7–1844: Airgram
The Chargé in Argentina ( Reed ) to the Secretary of State
[Received July 29—2 p.m.]
A–582. The following is a more detailed explanation of the Embassy’s reply in its cable No. 1860, July 17, 1944, 8 p.m.74 which was sent in reply to the Department’s cable No. 1140, July 15, 1944, regarding the prohibition of exports of salt from Argentina to Uruguay.
The Embassy contacted four of the local frigoríficos and the two largest local salt suppliers and the consensus of opinion of these firms is that the prohibition of salt exports to Uruguay represents a definite economic sanction against Uruguay. All four of the frigoríficos contacted had made applications for shipment of salt (which they were carrying in stock) to their branches in Uruguay. These applications were turned down by the Argentine Government. Applications for exports became necessary under a decree issued early in July to the effect that exports of salt were subject to the granting of a prior export permit by the Argentine Government. One frigorífico mentioned that it had regularly shipped hides from its branch in Uruguay to its Buenos Aires plant where the hides were salted and then placed on steamer for export shipment. The Government has now informed this frigorífico that it can no longer use the salt which it carried in stock in Buenos Aires but must ship Uruguayan salt along with the hides if the salting is to be done in Buenos Aires or else handle the salting in Uruguay.
[Page 1624]The question had been raised as to whether or not the prohibition of salt exports was due to a shortage of salt in Argentina. The frigoríficos explained that the salt they intended to ship was really carried as stock by their firms. The salt suppliers further stated that there is no shortage of salt in Argentina, that they produce according to demand and that they could increase production at any time to meet any increased demand. Production in 1943 was approximately 500,000 tons and total shipments to Uruguay represented only about 2 per cent of this figure. A glance at exports shows that in 1943 total exports of salt amounted to 109,401 tons. During the first three months of 1944, only 12,000 tons were shipped, mostly to Brazil, but during the second three months of this year, 54,000 tons were shipped; the total for the first six months 66,324 tons, representing little more than one-half of shipments during 1943. Therefore, although shipments within the last two months may be considered as greater than normal, they still represent no extraordinary increase which could not be handled immediately from local production.
Trade information indicates that Brazil is importing large quantities of salt from Argentina due to the fact that its own supply is short. Brazil apparently produces marine salt which is shipped from northern Brazil to the great consumption centers in the South. Shipping is difficult at the present time and the southern part of Brazil has, therefore, been unable to receive its normal supply. Imports can be obtained from Spain but the Spanish salt is much more expensive than the Argentine product and therefore Brazil has turned to Argentina for its supply. Argentina is naturally anxious to ship products of any sort to Brazil to balance its huge imports from Brazil and would, therefore, much prefer Brazil to Uruguay as a market for salt exports.
- Not printed.↩