711.35/7–2746
The Ambassador in Argentina (Messersmith) to the Secretary of State
No. 448
Sir: …
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After a study of the list appended hereto83 in which the Minister84 has stated immediate action will be taken, and after the study of the long list of some hundreds of firms (which is not transmitted herewith as I do not believe it has any interest to the Department, and time would not permit in any event because of its length to send a copy by this mail), we are convinced that if the Argentine Government proceeds with appropriate action in the firms listed in the list herewith transmitted it will have adequately fulfilled its obligations in the matter of enemy property, and I make free to say that, if it does carry through this program adequately as set forth in the appended list, it will have carried through its obligations as fully as if not more fully than any one of the other American republics. I am sure the Department will be of this view also.
An examination of the list hereto appended will show that it covers almost all of the firms in which our Government and the British Government have evinced any interest. Notably, however, it contains no reference to the Staudt firms. I am unable to explain at this moment why the Minister should have omitted from this list the Staudt firms, but it is probably due to the fact that the Staudt interests have caused more difficulty to the Argentine Government in its liquidation program than any other. Most of the court suits which have been instituted against the Government in the matter of enemy property action have come from the Staudt interests.
We are giving this whole matter very careful study in the Embassy. Our preliminary opinion is that, if the Argentine Government proceeds [Page 290] with the nationalization, Argentinization or liquidation of the firms mentioned in the appended list as the Minister has indicated it will do, it will have performed adequately in the matter of enemy property. The Department will realize from its knowledge of what has been done in other American countries, that, if the Argentine Government carries through this program according to the appended list, it will have done relatively more than most and perhaps any other of the American countries.
This Embassy is now, however, studying what further observations we shall make to the Minister and we are presently of the opinion that we should bring to his attention very definitely the Staudt interests for liquidation or complete Argentinization, as well as some 15 or 16 of the firms of secondary importance which are contained in the long list of hundreds of names not transmitted with this despatch, for the reasons already indicated above.
The Minister indicated in a very categorical manner that he had already given the most definite instructions to the new Junta to proceed rapidly with respect to the firms mentioned in the appended list. He did not indicate whether he had already discussed this matter with the President and with the Cabinet, but I am of the opinion that the Minister would hardly have made such categoric statements as those which he made to me and delivered to me these confidential documents, of which I could make copies, returning the originals to him, if he had not so discussed the matter with the President and the Cabinet in the most definite manner.
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Respectfully yours,