Office of the Historian

740.35112 RP/10–645

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

[Extract]
No. 999
Buenos Aires, October 6, 1945.
[Received October 16.]

Sir:

. . . . . . . . . . . . . .

Intervened firms in process of investigation: 55

Intervened firms investigated: 69

It will be observed in analyzing these statements that although little progress has been made in the complete elimination of Axis spearhead firms, still a substantial progress has been made in the absolute control of spearhead firms.59 The Embassy of course cannot express any satisfaction with the progress of the program until the spearhead Axis firms are completely and permanently liquidated. In speculating as to the reason why the Argentine Government has failed to date to take the ultimate step to completely eliminate the Axis firms by forced sale or liquidation, it may be that the Argentine Government intends to rest only with the type of control referred to in this despatch. In fairness to the Junta60 and Dr. Cooke, they have stated that the avowed purpose of the Government is to liquidate or sell a majority of the firms now controlled. The Department will recall that the Argentine replacement decrees all provide that the Government may in its discretion decide either to sell, liquidate, or effectively control the Axis firms. If the Argentine Government should not completely and permanently eliminate the Axis firms by liquidation or forced sale, it may still claim technically and legalistically that it has complied with its international commitments as the language used in Resolution 5 of the Rio Conference,61 Resolution 7 of the Washington Financial Conference of 1942,62 [Page 483] and Resolution 18 of the Mexico City Conference63 provide for the elimination or permanent control of Axis entities. The Argentines may therefore claim that on a strict and technical construction of their commitments and that by their type of control they have complied with Resolution 18 of the Mexico City Conference. Argentina may also contend that when its record of control of Axis firms is compared with that of some of the other American Republics there has been fairly satisfactory compliance. Embassy officers have constantly advised officials of the Junta and the Foreign Office that the complete and permanent elimination of Axis spearhead firms is the ultimate goal and should be speedily accomplished by the Government. The verbal assurances of Dr. Cooke, the Foreign Minister, and the Junta officials that they intend to completely eliminate the spearhead Axis firms is however dependent on the Perón regime, whose good faith must always be questioned.

Respectfully yours,

For the Chargé d’Affaires ad interim:
Howard H. Tewksbury

Counselor of Embassy for Economic Affairs
  1. The statements indicated, in summary, that the Argentine replacement program had eliminated 5 firms, was in the process of liquidating 8, and had brought 59 under control of the Government.↩
  2. Junta de Vigilancia.↩
  3. See footnote 77, p. 439.↩
  4. For text of Resolution VII, see Pan American Union, Final Act of the Inter-American Conference on Systems of Economic and Financial Control, Washington, D.C., June 30–July 10, 1942 (Washington, 1945), p. 19.↩
  5. For text of Resolution XVIII, see Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City February-March, 1945, p. 55.↩