840.51FC35/8–1844: Telegram
The Chargé in Argentina (Reed) to the Secretary of State
[Received 8:17 p.m.]
2155. Embassy is presently opposed to freezing Argentine funds as mentioned in Department’s 1303 August 17, 6 p.m.44 Such action at this time would merely constitute punishment of Argentina and would have little economic war advantage or justification. Embassy would approve freezing if such action were part of all-out program or if it were directly related to protection American investments Argentina. However, recent executive and judicial developments reference OK expropriation indicate temporarily improved situation. No advantage can be seen in initiating any action which cannot attain a major objective and which might sting Argentina into reprisals especially if United States dependent on Argentina for supplies as indicated by recent telegrams such as Department’s 1297 August 16, 10 p.m.44 Our political position has been stated by the Secretary with full clarity and if August 26 policy44a is to be left substantially unmodified isolated punishment measures by United States alone would tend merely to play into the hands of our enemies and to promote Great Britain’s postwar trade position in Argentina at our expense.
- Not printed.↩
- Not printed.↩
- See memorandum revised as of August 26, 1943, Foreign Relations, 1943, vol. v, p. 492.↩