740.35112A/12–1345: Telegram
The Chargé in Argentina (Cabot) to the Secretary of State
[Received 1:27 p.m.]
3115. AP and UP88 despatches published in local press amplify statements by McDermott89 reported in today’s radio bulletin. McDermott is quoted as citing “the three principal beneficiaries (Freude, Staudt, and Mandl) of the delay and protection of Argentine officials,” and as declaring that “in conformity with the Chapultepec Act the Argentine Govt, together with the American Republics agreed to confiscate all enemy businesses functioning within their respective boundaries. He added that up to now the Argentine Govt, has not adopted these measures in any case.”
I feel that I should respectfully point out to Dept. that there are serious inaccuracies in press version of McDermott’s statements. We have never asked that any action be taken by Argentine Govt, against Mandl because evidence against him is barely sufficient justify his inclusion on PL. Dept will also recall that it even refused authorize his deportation to U.S., reDeptel 655, June 811 a.m.90
Under the Rio, Washington, and Mexico City Resolutions (not Act of Chapultepec) American Republics did not agree confiscate enemy property. As pointed out in Embassy’s despatch 1056, October 1390 Argentina may be said to have made technical and very substantial compliance with respect to its commitments to take action against Axis firms. Despite the suspicion which must inevitably arise in connection with Staudt affair, progress made since that date has increased, rather than decreased, Argentine compliance. In this particular even radio bulletin is inaccurate.
I must emphasize to Dept. that inaccurate statements of nature cited above may unfavorably sway wide sector of Argentine public opinion which is actually or potentially opposed Perón but which objects to what it considers our constant picking on Argentina. Moreover, we can scarcely expect Argentine cooperation in continuing process of liquidating German firms (which as pointed out above is not covered by Inter-American Resolutions) if we publish inaccurate statements smearing the real progress made by Argentina. I should also imagine that Cooke’s half truths would be more readily believed in other American Republics than any palpable inaccuracies published by us if only because of entirely human urge to seek the easiest way out. [Page 494] I earnestly hope Dept. will immediately issue a correcting statement and will take care that future statements about Argentina are strictly accurate.