Foreign Relations of the United States, 1949, The United Nations; The Western Hemisphere, Volume II

840.50 Recovery/2–2449: Telegram

The Secretary of State to the Embassy in Argentina

confidential
us urgent

Washington , February 25, 1949—6 p. m.

143. From Bruce. As result long conference with Howard Bruce, there is clearly difference of opinion between Bruce and Bramuglia as to former’s comment during interview in Dec (urtel 196, Feb 24). Howard Bruce states that in outlining ECA position he explained that early in 1948 financing of purchases in Arg reaching possibly 300 million was anticipated. Subsequent crop developments in US and Europe resulted in surpluses and prevented financing large offshore purchases by OEEC countries. While Bruce states he emphasized desire of ECA to find means of expanding financing in Arg no commitment of any kind nor indication as to probable purchases was made. Bruce of opinion, that Bramuglia may have assumed that reference to anticipated purchases at early stage of program may have been interpreted as indicating possible purchases in near future. Bruce reports interview was on most cordial basis and regrets that any misunderstanding arose but insists that no indication was made as to prospective financing.

Remorino¹ today learned from Hensel² that expected financing was based on misunderstanding.

Careful survey being made as to market possibilities in US for wool, hides, quebracho and other products and that ECA preparing memo to indicate possible dol financing during forthcoming year. For your info only, ECA now estimates about 8 million to June 1950.

Postpone discussions foregoing pending instructions Dept.³ [Bruce.]

Acheson

1. Jerónimo Bemorino, Argentine Ambassador in the United States.
2. H. Struve Hensel, an official of the ECA.
3. Department telegram 175, March 10, to Buenos Aires instructed Mr. Ray to inform Mr. Bramuglia of the information contained in Department telegram 143, emphasizing the fact that Ambassador Bruce, Department officials, and others were actively seeking ways by which OEEC purchases in Argentina might be financed in dollars or U.S. imports increased thus alleviating the Argentine dollar shortage. (840.50 Recovery/3–1049)