862.503135/1–1545: Telegram

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

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:

1.
Dividends limited to 10 percent.
2.
Balance of profit must be applied to company’s debts or business.
3.
Bank accounts must be deposited in blocked accounts in Central Bank.
4.
Dividends must be paid in blocked accounts in Central Bank.
5.
Payments by intervened firms to other intervened firms or Axis nationals must be paid into blocked accounts in Central Bank.
6.
Business programs must be approved.
7.
All transactions and payments exceeding 1 year’s period require approval.
8.
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.
9.
Intervened manufacturing establishments cannot be liquidated or dissolved.
10.
Commercial firms other than factories shall be liquidated or expropriated according to the discretionary determination of intervention committee.
11.
Salaries of directors and agents may not exceed 1,500 pesos monthly. All other salaries and bonuses must be approved.

Reed