The Secretary of State to the Chargé in Argentina ( Reed )

No. 6351

The Secretary of State refers to the Embassy’s despatches no. 14974 of June 6, 1944 and no. 15244 of June 30, 1944,84 concerning the ownership, control, and activities of Transradio Internacional, Cía. Argentina de Telecomunicaciones, and encloses herewith a copy of a memorandum85 containing the significant information in the Department’s files with regard to this company.

It will be noted from the enclosed memorandum that according to the Consortium Agreements (page 112), copies of which were furnished the Embassy with instruction no. 5751 of May 9, 1944,85 the trust constituted by the Agreements was to terminate on February 26, [Page 409] 1945, at which time the trustees were to distribute the property equally among the four contracting parties.

The Department is presently giving consideration to the advisability of discussing with the appropriate officials of the United States member of the Consortium,86 the Radio Corporation of America, the action which is contemplated in February 1945 in the event that the original agreement was not subsequently extended by the contracting parties. These discussions might also refer to the arrangements with the general manager, the assistant manager and the traffic manager of Transradio whereby these persons have received substantial bonuses based directly on the company’s gross income. Before doing so, however, the Department would appreciate receiving the Embassy’s comments on the advisability of the proposed action and any additional information concerning the activities of this company which has been received by the Embassy subsequent to June 30, 1944. The Embassy’s suggestions as to any other questions which it may be considered desirable to discuss with the Radio Corporation of America, such as continued banking transactions by Transradio with Proclaimed List banks, would also be appreciated.87

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  4. Consortium Trust Affiliates, composed in prewar days of British, American, French, German, and Italian interests; controlled Transradio Internacional Argentina and Transradio Internacional Chilena.
  5. The trust constituted by agreement among the participants in the Consortium was continued until the end of the war by action of the majority interests in February 1945.