835.24/12–2945
Mr. Willard Thorp, Deputy to the Assistant Secretary of State for Economic Affairs, to Mr. Arthur Paul, Special Assistant to the Secretary of Commerce
My Dear Mr. Paul: The rapid removal of war-time trade controls and the increased availability of goods and materials in the United States and other producing areas makes desirable at this time reconsideration of this Government’s export policy towards Argentina. At the same time, however, it must be recognized that the political situation in Argentina remains critical, and the greatest care must be exercised to avoid any action or publicity which might be interpreted in Argentina or elsewhere as evidence of a shift in the political attitude of the Department toward the present regime. Having in mind also that unilateral economic sanctions will be ineffective under rapidly reviving post-war trade, it appears necessary to review the present policy in order to bring it as quickly as possible in line with prospective conditions of international competition.
Consistent with the foregoing, commodities still under allocation or other controls should be made available to Argentina on the same basis as that now being followed for the other American Republics. Furthermore, in specific instances, judged on their merits, additional supplies or materials may be made available in order to assure that Argentina produces and ships goods which are so urgently needed by our Allies.
It should be further understood in this connection that it is the Department’s intention to assure at the same time, in so far as existing controls permit, that no economic assistance should be afforded Argentina which in effect lends direct support to the present regime, to Axis interests, or to the Argentine military or naval establishments.
The following specific suggestions may be of assistance to the Office of International Trade Operations in applying the policy outlined above and should be considered as superseding previous correspondence between the two Departments on this subject.
- 1.
- In order to permit the exportation to satisfactory purchasers in Argentina of civilian aviation equipment, and spare parts for the repair and maintenance of trainers and civil aircraft, export licenses may be issued for such commodities provided they are not for export to the Argentine military or to “cloaks” for the military.
- 2.
- Subject to the domestic supply situation it is the Department’s desire that as much coal as possible be made available for Argentina so as to permit the exportation of such shipments as may be recommended by the American Embassy in Buenos Aires. It is suggested that consistent with the available port and shipping facilities in this country, unrestricted quantities of petroleum coke, slack coal, and [Page 559] other grades of coal in free supply, be permitted for exportation to Argentina. The specific question of an increase in the coal quota will be covered in a letter to Solid Fuels Administration, copy of which will be sent to you.
- 3.
- Export licenses may be issued for capital equipment destined for Argentina provided such equipment is not likely to contribute directly to the Argentine armament industry … and provided such exportation is favorably recommended by the American Embassy in Buenos Aires or by the Department of State.
- 4.
- Export licenses may be issued for available surplus commodities to be shipped to satisfactory consignees in Argentina in line with the present practice of licensing surplus commodities for export to the other American republics.
- 5.
- Referring to recent communications from the American Embassy in Buenos Aires in regard to export license applications involving unknown consignees, you are informed the Department desires that the present procedure be continued and that such applications be referred to the Embassy for recommendation before corresponding export licenses are issued. The Embassy is being informed of the continuance of this procedure for the present, and it is contemplated that this question will be again reviewed in a month or two.
The Department also suggests that the following points in the present export policy toward Argentina be continued:
- 1.
- Argentina should be retained in Group E as defined in Current Export Bulletin No. 276 of September 10, 1945.14
- 2.
- Before approving export license applications covering proposed shipments to the Argentine armed forces, except materials essential to public health and safety, such applications should be favorably recommended by the American Embassy in Buenos Aires or by the Department of State.
- 3.
- No exports of 35 mm. raw film shall be permitted until further notice from the American Embassy in Buenos Aires or from the Department of State.
- 4.
- Before approving export license applications covering proposed shipments to Argentina of oil field drilling equipment, refinery equipment, or maintenance and repair parts for the oil industry, such applications should be favorably recommended by the American Embassy in Buenos Aires or by the Department of State.
Sincerely yours,
- Issued by the Requirements and Supply Branch, Bureau of Supplies, Foreign Economic Administration.↩