740.35112 RP/1–2447: Telegram

The Chargé in Argentina (O’Donoghue) to the Secretary of State

confidential
us urgent

87. ReDeptel 35, January 16. Foreign Minister this afternoon gave me copy decree which he said was signed yesterday by President Perón and all Cabinet members reading in translation as follows, and which he said would be published tonight or at latest tomorrow:

In view of:

Resolutions Nos. XVIII and XIX of the Inter-American Conference on Problems of War and Peace,20 held in Mexico in 1945, or Act of Chapultepec, whereas:

By virtue of the aforementioned Conference the Republic has contracted obligations relating to the liquidation of enemy property;

In order to proceed promptly to liquidate the property in question, it is necessary that the state acquire that property, without this preventing it from subsequently offering the same in sale to private individuals, or from forming mixed corporations, etc.;

The purchase of the property by the state would offer the advantage that the liquidation of such enemy property would thus instantaneously be effected, since it would be transferred from the hands of the enemy into those of the state;

Contrarily, if the property were sold to private individuals, pertinent operations would delay the liquidation of the property in question, inasmuch as it would be necessary to prove balances, inventories, etc.; the measure intended to fulfill the obligation under reference, has its origin in the state of war and is a consequence of the act signed by the country (Act of Chapultepec), which is a supreme law of the nation (article 31 of the national constitution).

Therefore, and in accordance with the provisions of article 9, second part, of the decree No. 11.599/46, the President of the Argentine nation at a general Cabinet meeting decrees:

Article 1, the acquisition en bloc, thru the Central Bank of the Argentine Republic, or thru the entities that are part of the system thereof, all the assets of companies and entities of commercial, industrial or financial character, which may be found to be in a state of liquidation by resolution of the board for vigilance and final liquidation of enemy properties.

Article 2, the price of the present purchase shall be determined in due course thru inventories, balances and expert appraisals that are made to that end.

Article 3, the Central Bank of the Argentine Republic will advance, an advance payment on the price, the sum of 100 million pesos Argentina currency.

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Article 4, the aforementioned sum shall be deposited to the order of the President of the Board for vigilance and final liquidation of enemy properties in the said Central Bank of the Argentine Republic.

Article 5, let this be communicated, published, forwarded to the national registry and filed.

Comments follow separate telegram.21

O’Donoghue
  1. These resolutions concerned the control of enemy property; for text, see Final Act of the Inter-American Conference on Problems of War and Peace, pp. 55–59.
  2. Infra.