Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

103.9168/1423

Memorandum by the Chief, American Republics Requirements Division (Knox)⁸⁹

[Washington,] December 28, 1943.

The Department is in receipt of an increasing number of letters and inquiries on the part of American exporters complaining bitterly of our export policy towards Argentina. This is to be expected. FEA⁹⁰ also reports that they are besieged by people who are becoming increasingly vehement regarding our restrictions against exports to Argentina under the policy determination, their opposition based on the ground that they have word from their agents that the British are boasting of their ability to supply things that we cannot.

I am not greatly worried about this attitude on the part of the American exporter although they are appealing to their Representatives in Congress to bring pressure upon the Department, alleging that the Department has adopted a policy which is a gross discrimination against American trade. What is really happening, of course, is that the Argentine importer is playing off American against British interests with the hope of provoking a discord. On the other hand, there appears to be sufficient evidence that there is less cooperation with the British than we desire on this question of exports to Argentina. At the moment the FEA is raising hob with the Department over Airgram No. 1382 from Buenos Aires (December 14, 1943)⁹¹ indicating the arrival there from Great Britain of a replacement shipment of machinery to a consignee which, according to our classification, is definitely “bad”; this consignee has a CA 4 rating.⁹²

It is understood that FEA feels it can get little satisfaction from the Department on this matter and is going to handle it with the British through their Lend-Lease man, although apparently it is not a Lend-Lease question.

To summarize the above, FEA is under great pressure from the exporters on our Argentine policy and is convinced that the British are using our restrictions to their advantage.

89. Addressed to Emilio G. Collado, Special Adviser on the American Republics; Charles P. Taft, Special Adviser on Supply and Resources; Philip W. Bonsal, Chief, Division of American Republics, and Laurence Duggan, Adviser on Political Relations.

    In the margin Mr. Collado addressed Mr. Taft as follows: “This may be very serious. Can you handle in the Exp. Mkt. Comm. or should we take it up with A–A [Assistant Secretary Acheson] for a formal protest to British? EGC”

90. Foreign Economic Administration.
91. Not printed.
92. The consignee was on the United States confidential list which consisted of the names of persons or firms closely identified with the Proclaimed List firms.