835.50/9–444: Telegram

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

1378. Your 105, January 13, 3 p.m.12 To re-enforce our political stand towards Argentina, the Department proposes to put into effect as soon as practicable the following revised export program quoted in paraphrase: [Page 421]

  • “1. With the exception of projects directly contributing to the war effort no Argentine development project will be approved.
  • 2. Operational equipment used in connection with the production of petroleum products and boring and oil field equipment, as well as all other types of petroleum equipment, shall not be exported. The exports of fuel oil shall be limited to the minimum amounts necessary to assure the continued services of Argentine tankers in transporting vegetable oils to the United States.
  • 3. The export of automotive vehicles, railway locomotives or rolling stock is forbidden.
  • 4. No further increase in the number or value limits of products exportable to Argentina under general license shall be permitted.
  • 5. Exports to the Argentine Armed Forces and supplies and materials for the Argentine armament industry are forbidden.
  • 6. The export of Fourdrinier phosphorous bronze screens suitable for the manufacture of newsprint is forbidden.
  • 7. Through navicert control or other appropriate devices an endeavor shall be made to obtain similar reductions in exports to Argentina by other countries.
  • 8. The quarterly issuance of licenses for the export of all products not otherwise limited herein shall be restricted to the requirements of those industries in Argentina whose products are essential to the United Nations war effort plus 1) minimum amounts for the maintenance, repair and operations of industries and public utilities contributing to the United Nations war effort, and 2) minimum amounts in other fields for the maintenance of public health and safety.
  • (Products defined as necessary for the maintenance of public health and safety shall consist exclusively of the following: restricted amounts of essential drugs for the avoidance of epidemics and the treatment of disease; essential equipment for hospitals, clinics and other public health centers; supplies essential for the maintenance, repair and operation of the common public utilities.)”

It is desired that the foregoing changes be accomplished with a minimum of publicity. No announcement will be made here, and it is expected that you will continue to accept from the Central Bank certificates of necessity issued in accordance with existing procedure, which you should screen closely against the above stipulations. No intimation of the change should be given the Central Bank.

The foregoing program will be presented by the Department to the British with a request that they adopt similar restrictions. Transmission of a directive to FEA embodying this revision is being held up for your comments.13

Instructions are also being given to WSA,14 effective October 1, 1944, to withdraw all vessels under its control from the northbound service with the exception of those nominated for the lifting of corn and one Norwegian vessel scheduled to take a miscellaneous cargo in late September or early October. WSA is also being requested to [Page 422] obtain strict adherence by the Flota15 to its agreement pertaining to the lifting of priority cargo.

Hull
  1. Ante, p. 290.
  2. See airgram A–936, December 16, from Buenos Aires, p. 371.
  3. War Shipping Administration.
  4. Flota Mercante del Estado, Argentine Government-controlled shipping organization.