Memorandum by the Economic Analyst of the Division of River Plate Affairs (Gilmore) to the Chief of That Division (Lyon)

As requested, I discussed with Mr. Falck, SD,71 today the suggestion that in any future ship sales we include a reservation on the title to combat the present Argentine policy of including discriminatory division of traffic clauses in its trade agreements with Chile, Spain, and other countries. I also raised with him the question of discrimination against the Moore-McCormack ships in the port of Buenos Aires.72

Mr. Falck said that he would have to study the question of attempting [Page 263] to place reservations on the title of vessels sold by the Maritime Commission. He stated that for the present the Maritime Commission will not sell any C–3’s to any foreign purchasers and that pending applications for Victories73 will be referred to us before action is taken.

With respect to port discrimination in Buenos Aires, he said that SD will prepare an instruction to the Embassy asking for detailed information before instructing them to make any further representations to the Foreign Office. He pointed out that in view of a congressional resolution which requires American exports financed by the Export Import Bank to be carried in American bottoms our own record regarding discrimination is not particularly clear.

E. A. Gilmore
  1. L. James Falck, Assistant Chief, Shipping Division.
  2. In a memorandum transmitted with a letter of April 8, by a representative of Moore-McCormack Lines, evidence was presented to show that while an Argentine ship was berthed immediately, 5 of the Line’s ships had been waiting from 7 to 19 days (835.1561/4–1547).
  3. Wartime cargo ships.