835.01/313: Telegram

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

887. In attempting to analyze the situation as it now stands with respect to our relations with this regime, it seems to me that certain fundamental factors must be kept in mind.

1.
The question is essentially one involving the whole future of American continental solidarity and cooperation and the Argentine situation must be considered in connection therewith.
2.
The situation cannot and will not remain static: We must decide upon our course of action and adhere to it.
3.
There is considerable indication that various countries particularly Brazil (Rio’s telegram 1202, March 31, 10 a.m.8) and Uruguay which is being subjected to increased political and economic pressure by Argentine regime are not prepared to hold out on recognition issue much longer unless some definite course of action is decided upon.
4.
The developments in Bolivia which the Department is in the best position to appraise might suggest possibility of diplomatic relations with Bolivian regime (I note that press now reports resignation of Paz Estenssoro and other remaining member of PNR [MNR]9 from Junta and preparations to hold elections). In my opinion reestablishment of relations with a government in Bolivia would offer excellent opportunity for counteracting subversive activities of pro-Nazi elements here and in other American countries. Favorable action on Bolivia following their housecleaning and calling of elections might well encourage similar action here while continued failure to recognize Bolivian Junta after steps they have taken may have discouraging effect on local situation.
5.
As a corollary every effort should be made to extend economic assistance to Uruguay immediately and openly in view of extent of economic pressure now being brought to bear upon it by Argentine regime. I understand that all export permits for Uruguay have been held up since end of February and include those covering chlorine for Uruguayan water purification. Information on this situation available here has been transmitted to Montevideo. Uruguayan Consul General10 states that he has personally written to America stressing seriousness of situation. Despatch on subject going forward today.
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I am inclined to believe that action along the lines suggested is more calculated than any other step (short of complete and immediate economic sanctions) to bring regime here to its senses and would probably have support of other American Governments as indicated in Caffery’s 1202.

Armour
  1. Not printed.
  2. Victor Paz Estenssoro was the founder and leader of the Movimiento Nacionalista Revolucionario. He was Minister of Finance under the Junta.
  3. Luis Enrique Azarola-Gil.