835.01/7–2844: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)
6339. At meeting on Wednesday72 with Law,73 Campbell and Hadow,74 I stated our views with regard to the meat negotiations substantially along the lines of Department’s 6091 of August 2, 8 p.m. I emphasized our hope that the negotiations would be delayed and that when finally concluded, the contract would be for a short term. Law stated that he would report these views immediately upon his return.
I also informed Law that we are considering a cut in our purchases from Argentina by from 40% to 60% and that you had been instructed in the cable under reference to discuss this with the Foreign Office to obtain the views of the British government.
Since we are also giving serious consideration to freezing Argentine funds, Law was so informed. We explained that Argentina’s [Page 343] failure to implement the break in relations justified our placing her in the same class with other neutrals whose funds had been frozen. You will recall that this is the action that was proposed prior to Argentina’s break in relations in January and that at that time it was agreed that existing British financial controls obviated the need for similar action by Britain.
In view of Eden’s request that we confer with him before taking any new action, we are anxious to receive his views on the question of reduction of our purchases and the possibility of parallel British action.
Please inform Eden of my talk with Law and request his views with respect to our proposal to freeze Argentine funds.