740.00112AEW/8–1646: Airgram
The Ambassador in Argentina (Messersmith) to the Secretary of State
[Received August 26—12:30 p.m.]
A–858. Numerous inquiries by Argentine and American firms and their representatives necessitate clear understanding of Department [Page 304] policy regarding trading with former Proclaimed List entities. Many such inquiries must be answered in writing. Problem relates to policy to be observed with reference to 1) firms deleted by group deletions; 2) firms still listed at discontinuance of PL.
It is the Embassy’s understanding that, except where there has been specific blocking of funds by the Treasury, there is nothing to prevent American or Argentine firms dealing with former PL entities. It is recognized that to place the representation of American products on an exclusive basis with a former PL firm might be undesirable from many points of view. In the case of transactions involving solely the sale or purchase of merchandise, it would appear that there is less basis for discouraging trading with former PL firms. If American firms fail to supply merchandise required or fail to purchase merchandise offered, nationals of other countries will undoubtedly take advantage of the opportunities since it has already become a known fact that firms in several European countries are actively seeking connections with former PL firms, probably in some instances with official approval. Insofar as Argentine firms are concerned, a statement from the Embassy attempting to discourage transactions with former PL firms might be interpreted as interference by the United States in the internal affairs of the country.
In order to assist the Embassy in answering inquiries received regarding the firms described in the classifications indicated in the first paragraph, specific instructions would be appreciated regarding the attitude to be taken under the following conditions:5
- 1.
- Is there any objection to Argentine firms engaging in buying and selling transactions with former PL firms?
- 2.
- Is there any objection to an Argentine firm acting as exclusive distributor or as purchasing representative for a former PL firm?
- 3.
- Is there any objection to the Argentine branch of an American firm purchasing part or all of a specific requirement (i.e., metal tubes for the packing of dental cream) from a former PL firm or selling a specific product (i.e., small electric motors for the manufacture of household appliances) to a former PL firm?
- 4.
- Do we consider as objectionable transactions involving sales or purchases by firms in the United States, either directly or through travelling representatives, where former PL firms are involved?
- 5.
- Do we consider as objectionable the appointment by distributors or agents in Argentina, whether American or Argentine, of former PL firms to act as sub-dealers or sub-agents?
- 6.
- Do we consider as objectionable the appointment of former PL firms as exclusive distributors or sole purchasing agents?