835.24/10–444
The Deputy Foreign Economic Administrator (Currie) to the Assistant Secretary of State (Acheson)
My Dear Mr. Acheson: Receipt is acknowledged of your letter of September 9, 1944,90 and enclosures consisting of (a) amendment to that portion of the policy directive, dated August 26, 1943, which covers exports to Argentina,91 and (b) a copy of the directive to War Shipping Administration, which covers imports from Argentina.92
Of course, FEA supports the purpose of these policy directives. Attention is called, however, to the fact that while United States exports dropped to 30 percent of the 1941 shipments and will probably shrink further to 10 percent of the 1941 figure under the new restrictions, many of the commodities which Argentina previously obtained in this country are now being supplied her by others, as follows:
| Commodity | Country |
| Zinc ingots and sheets; lead arsenate; white arsenic; fibres; pig iron | Mexico |
| Pig iron; iron pipe; iron bars; graphite; ultramarine blue | Brazil |
| Calcium carbide; pig iron; iron bars; iron sheets; steel wire; copper; coal | Chile |
| Calcium Carbide | Canada |
| Chrome tanning salts; coal | South Africa |
| Machinery; electric motors; dyestuffs | Switzerland |
| Steel pipe; steel wire; iron bars; iron sheets | Spain |
In addition, a large contraband traffic is growing up between some of the other American Republics and Argentina involving re-export of commodities obtained in the United States and diversion of commodities under procurement contracts to the United States. It is feared, that the curtailment of tonnage out of the Argentine has the effect of replacing the imports to the United States of low value essentials with those of high value non-essentials with little or no effect on the economy of the Argentine.
It is believed that concurrent measures to guard against these conditions are urgently needed. It is assumed that the proposals which were developed in the talks between the Department of State, the Treasury and Foreign Economic Administration are still under consideration and we would like to pursue them further with you.
Sincerely yours,
- Not printed.↩
- For substance of this directive, see Foreign Relations, 1943, vol. v, p. 492.↩
- Directive on imports not printed; for the directive on exports, see p. 348.↩