840.51 Frozen Credits 35/406: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 4:03 p.m.]
1173. I have very carefully considered the suggestions contained in your 741, May 5, 3 p.m. [10 a.m.]. In this connection, I would appreciate your referring to my telegram 729, March 15, noon,4 especially the first paragraph and the paragraph following indent (d). With specific reference to general freezing I cannot recommend this action at this time, since I believe it would be a dangerous and unwise step to take until our overall policy towards this country has been definitely determined. I feel that we should not take action which would humiliate Argentina without being willing to follow through completely. Parenthetically, I would appreciate your reviewing my telegrams Nos. 2483, October 20, 9 p.m., and 2530, October 27, 6 p.m.5 You will then see that my recommendation for freezing was based on a set of local circumstances far different from those existing today.
I would also recommend that consideration of items “a”, “b”, “c”, and “d” be deferred pending a decision on overall policy. The August 26 policy6 is fully defensible on grounds other than its being of punitive or pressure character. It merely makes a clear distinction between scarce and non-scarce commodities. Even Argentina has never challenged the fundamental basis of that policy, namely, that we were justified in demanding that requests for scarce commodities be justified on the basis of contribution to the war effort. Items “b” “c”, and “d” by themselves are not sufficiently effective to do anything other than further irritate this Government. Item “a” is being considered by Embassy, but on the general basis outlined in my telegram 540, February 25, midnight.7 Its recommendations in this regard will be forwarded in due course.
- Post, p. 413.↩
- Foreign Relations, 1943, vol. v, pp. 493 and 496, respectively.↩
- See memorandum revised as of August 26, 1943, ibid., p. 492.↩
- Not printed.↩