740.35112A/5–3146: Telegram

The Secretary of State to the Ambassador in Argentina (Messersmith)

secret

789. Proposal contained urtel 1495, May 31 reviewed by IDPLC. Following difficulties exist: 1) In administering PL the Dept and IDPLC have never acted for any country on mere promises but only upon performance in making actual sales or vesting title to firm; 2) if we were to reverse this policy Arg would certainly be wrong country to single out in view her previous failures to comply with commitments. Moreover, Arg Congress has not yet approved Replacement Decree; 3) Press release such as you suggest has never been issued for any country and would mean special consideration for Arg which certainly is not warranted for above reasons; 4) you have previously been authorized to give assurances to individual prospective purchasers. In this connection refer also to Deptgam 404, Apr 19 and Deptel 560 Apr 25.42 Dept & IDPLC therefore cannot approve proposal.

In any event, in view of last sentence urtel 1495 Dept presumes that your proposal delete controlled enterprises now inexpedient for following reasons: 1) Although date of withdrawal PL has not been publicly announced, New York Times article of June 2 asserted unofficially PL being withdrawn July 1. Argentine Embassy here undoubtedly notified Buenos Aires. 2) Moreover Deptcirtel of Jun 5, 8 a m43 asked all Embassies to notify Govts to which they are accredited of impending withdrawal of PL because of possible dependence of their controls upon List.

Byrnes
  1. Neither printed.
  2. Ante, p. 83.