835.24/9–1544: Circular telegram
The Secretary of State to the Diplomatic Representatives in the American Republics Except Peru, Uruguay, and Argentina
The Department views as most serious evidence recently received of an increase in re-exports, both legal and illicit, of American merchandise from some of the other American Republics to Argentina.
With the easing of the supply situation coincident with the growing shortages in the Argentine, this illegal traffic will continue to offer large profit possibilities.
It is desired that at the earliest opportunity you seek an interview with the appropriate officials to state in a friendly but firm way your Government’s concern at this development.
You should say that not only is the re-exportation of American merchandise contrary to the letter and spirit of the export laws and regulations now in force, but also that this action, particularly in the case of the Argentine, results in a negation of adopted policies of concerted hemispheric action.
Some of these goods have been furnished by the United States at sacrifice to civilian consumers in this country, and in majority of cases the quantities involved must be subtracted from the total supplies available for the use of other friendly governments and peoples throughout the world.
[Page 351]Arrangements should be made through the Country Agency for the issuance of a statement that the re-exportation of materials received from the United States is a violation of the conditions of the United States export license and might, therefore, result in the denial of export licenses covering shipments to persons involved in such action.
Naturally your approach to the Government officials must be an entirely friendly and understanding one, but it must be made unmistakably clear that action should be taken to bring about the cessation of this practice.
The Department is sure that the other American Governments will wish to correct this situation at once both in the interests of their own consumers and also because of their desire to cooperate with this Government.
As it has been reported that certain American firms are using this method to evade present export controls on shipments to Argentina, the Department wishes to be informed of any evidence of this character. In addition full reports are requested on persons or firms who may be involved in this illicit traffic.