The Ambassador in Argentina ( Bruce ) to the Secretary of State
1435. Representatives from oil companies received by Miranda alone noon today. Standard and Shell both replied negative, answering proposal sale Argentine producing properties. Miranda said reply exactly what he expected and, in fact, could not have expected different answer. Miranda then urged foreign companies give prompt consideration long-term marketing and refining problems. Local representative Standard believes this disposes at least for present question sale producing properties.
Reliable information is Barros, Canessa, and extreme Nationalist group brought pressure have President buy or expropriate foreign properties and declare on December 13 Argentine policy is have all petroleum resources nationalized. Appears this group has lost out so far as sale or expropriation concerned, although question has caused bitter battle within government. Perón, Bramuglia, and Miranda realize widespread repercussions expropriation or forced sale would have. Nationalist group will now press President for declaration 13th that no further concessions or contracts be given foreign companies and no mixed societies with foreign capital be approved.