The Chargé in Argentina ( Reed ) to the Secretary of State
[Received 5:21 p.m.]
73. Secretariat Industry and Commerce on January 12 issued a resolution which further implements decree and resolutions controlling Axis firms. Resolution embodies following principal points applicable to intervened firms:
- Dividends limited to 10 percent.
- Balance of profit must be applied to company’s debts or business.
- Bank accounts must be deposited in blocked accounts in Central Bank.
- Dividends must be paid in blocked accounts in Central Bank.
- Payments by intervened firms to other intervened firms or Axis nationals must be paid into blocked accounts in Central Bank.
- Business programs must be approved.
- All transactions and payments exceeding 1 year’s period require approval.
- No one may be a director of intervened firm unless he owns at least 10 percent of capital or has been director for more than 5 years.
- Intervened manufacturing establishments cannot be liquidated or dissolved.
- Commercial firms other than factories shall be liquidated or expropriated according to the discretionary determination of intervention committee.
- Salaries of directors and agents may not exceed 1,500 pesos monthly. All other salaries and bonuses must be approved.