835.24/4–1245: Telegram

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

377. The following statement of export policy has been delivered to the Foreign Economic Administration:

Export Policy Toward Argentina. Reconsideration has been given to the economic arrangements existing between this country and the Argentine. The economic side of our Argentine policy has been consistently geared into the development of our political relations. Argentina now has accepted the opportunities presented by the Inter-American Conference on Problems of War and Peace, to take measures to reaffirm its solidarity with the other American republics. This has made possible the resumption of diplomatic relations with the Argentine by the other American republics.47

An economic policy toward the Argentine that is comparable in every respect with the economic policy of this country toward the other American republics is compatible with these political developments. It is recognized that, during the period of war shortages, many of the essential requirements of the Argentine economy have not been met in full. Many shortages continue, however, and an attempt to correct these deficiencies would be at the expense of other countries. In future allocation and licensing decisions, the Argentine should be treated on an equal basis with the other American republics and within the terms of resolutions adopted at the Mexico City Conference (1945) and the Rio de Janeiro Conference (1942),48 but under existing supply conditions no assurance can be made to provide allocations in excess of this principle to make up for past deficiencies.”

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

We understand that a number of countries still have in effect decrees prohibiting more or less completely the re-export of merchandise from the United States. There is now no objection to the re-export of [Page 531] materials which may be found to be surplus, even though they may have been acquired from the United States.…

From the supply side, the only reservations that may be necessary arise out of the desirability of directing exportable surpluses of indigenous production in ways most appropriate to the prosecution of the war, which is consistent with the resolutions passed at the Mexico City Conference.

  1. For documentation on recognition of the Farrell regime by the United States, see pp. 366 ff.
  2. Third Meeting of the Ministers for Foreign Affairs of the American Republics, January 15–28, 1942. For texts of the resolutions which appear in the Final Act of the Conference, see Department of State Bulletin February 7, 1942, pp. 118–140; for documentation concerning the Conference, see Foreign Relations, 1942, vol. v, pp. 6 ff.