835.50/170: Telegram
The Ambassador in Argentina ( Armour ) to the Secretary of State
Buenos Aires
, March 15,
1944—1 p.m.
[Received 4:30 p.m.]
[Received 4:30 p.m.]
730. The following information supplements Embassy’s 729 of March 15, noon:
- 1.
- Suggested program designed to permit imposition and lifting of sanctions without public announcement. This approach necessary not only for reasons explained in telegram under reference but also because events moving so rapidly in Argentina that any program must be able to quickly take advantage of new developments. Hence, shipping is used as basis. Weakest link may be point 3 relating to Allied bunkerage facilities. In view of bunkerage requirements of Argentine ocean going vessels (coal, 27%; fuel oil, 62%; diesel, 11%) and of stocks held in Argentina, it is believed Argentine vessels could continue to operate. Naturally this would be at expense of industry and public utilities which are already hard pressed for fuel. It would be wise to further implement effects of bunkerage measures by drying up northbound cargo. As heaviest tonnages (zinc concentrates, tungsten, vegetable oils, hides, leather) are under public purchase, it is assumed indefinite delaying tactics can be employed without need for announcement that purchases have been stopped. Furthermore, a heavy private purchase (wool) could be discouraged through M–63.3 Department is requested study bunkerage suggestion in connection with report 98, March 1, 1944,4 analyzing export commerce by flag of registry.
- 2.
- It is not believed diversion meat and other exports to Latin America or South Africa sufficient importance affect general decision.
- 3.
- While Embassy convinced meat is keystone, it must point out
that actual effects of discontinued shipments would be less
immediate than in January. Killing season peak passed.
Extraordinary February shipments believed [relieved] storage facilities. With no more shipments,
killing could continue uninterrupted for 1 month to 6 weeks.
Subsequently, ability frigoríficos
continue operations depend two factors:
- a.
- Amount tinplate made available since theoretically if tinplate continued available operations could be indefinitely continued, but it is believed tinplate feature alone would force close down within period variously estimated at from 3 to 4 months.
- b.
- No frigorífico could long carry financial burden of full freezers, nor could Argentine Government easily withstand loss from canning all available beef and mutton. Pork could not be canned. Hence, while theoretically packing plants could continue, actually repercussions in stock raising and meat processing industries would be profound and immediate.
- 4.
- In Embassy’s opinion program suggested would not violate provisions of British meat contract or of American commitments with respect to sunflowerseed oil, peanuts, and tungsten. In case of tungsten it will be necessary under agreement to pay 80% of value of any mineral available for export until termination of agreement, even though shipment is not made. This amount estimated at 2 million United States dollars.
Armour