835.24/9–2244
The Secretary of State to the Chargé in Argentina (Reed)
Allegations have been made to the Department of State that the present system for the control of United States exports to Argentina is not only causing competitive difficulties for United States exporters, but is also undermining current United States economic [Page 356] policies toward Argentina. As typical of such allegations the Department cites four cases some of which have already come to the attention of the Embassy.
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A common feature of these cases to which the Department calls attention is that British (or Canadian) firms are alleged to be selling commodities to Argentina which United States firms are not permitted to sell, and the Department cites them as illustrations of an important current problem. It appears that United States controls and current economic policies are not properly coordinated with British controls and policies, and that as a result United States exporters are disadvantaged and that United States economic pressure upon the Argentine through export controls is somewhat dissipated. Evidence is accumulating also that some United States firms, either through their home offices or through their connections in the other American republics, are attempting to circumvent our export controls by arranging the re-export of United States merchandise originally shipped to the other republics.
It is evident that our policy of economic pressure in Argentina is seriously threatened by these developments. The Department requests that the Embassy prepare a report commenting upon the specific cases outlined above, and setting forth any additional concrete and specific information along these lines which investigation may disclose.