835.00/2–1346

Memorandum of Telephone Conversation, by the Deputy Director of the Office of American Republic Affairs (Butler)

Mr. Cabot telephoned at 2:30 this afternoon to report on reaction to our memorandum.

He said that nothing much has happened yet and that the general reaction is one of stunned surprise. He stated that the Argentine people seemed to be overwhelmed by the disclosure. His opinion is that the democratic elements are surprised that the situation set forth in the memorandum actually was so bad.

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Mr. Cabot’s own reaction was entirely favorable. He stated that he thought a splendid piece of work had been done and that he was glad the memorandum was issued at this time. So far as he has been able to ascertain there is no resentment among democratic elements about the publication of the memorandum.

Mr. Cabot expresses the preliminary opinion that there is about a 20 to 25 per cent chance that Argentina will break relations. The reasoning would be to break with the United States before the other American republics, as a result of the memorandum, might break relations with Argentina. He said that he would keep the Department promptly informed.

Mr. Cabot also raised the question of a possible reply to Perón’s attack against Mr. Braden in Perón’s speech of February 12. He thought it might be best to take no notice of the attack. I expressed the personal opinion that the publication of the memorandum is reply enough and that no other statement seemed necessary or advisable. However, I promised to telephone or telegraph immediately if the Department wished him to take any action. Mr. Cabot said that if anything were to be done, it should be done not later than tomorrow.

Mr. Cabot also requested that he be given as much advance notice as possible about the time of his visit to Washington for consultation. He said that election results should be published about March 10 and that if Mr. Braden wants him to come to Washington shortly thereafter he would have to make his reservations soon.

George H. Butler