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

835.5200/3–1649: Telegram

The Chargé in Argentina ( Ray ) to the Secretary of State

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Buenos Aires , March 16, 1949—1 p. m.

259. Referring reported meeting between President Truman, General Marshall¹ and Ambassador Pawley² to discuss ECA purchases and other possible means of helping Argentina straighten out dollar shortage and financial difficulties.³ Greenup⁴ and I feel Embtels 230, March 9 and 248 of March 12 as well as Embassy airgrams 113⁵ and 134 should be considered before announcing any plans ECA purchases or other assistance. Also please see other communications on general subject including letters to Tewksbury and Bruce.⁶ We hear persistent reports Argentine Government feels, threat of expropriation may spur us into taking action. Argentines show no disposition make efforts settle at reduced prices. They are insisting on pound sterling convertibility.

We firmly believe it is to our interest help Argentina but before actually doing so we should reach an understanding which will afford adequate protection to American properties and business interests. We have discussed overall situation with Arnold, Whitney and other Americans as well as diplomats and prominent Argentines all of whom are extremely pessimistic. Government has gone back on promise remove 20 percent tax on meat exports and is showing generally unreasonable attitude.

I repeat we believe necessary clear up situation and help Argentina but think any precipitate action or announcement would be disadvantageous since we can gain more by negotiating before extending help.

Please inform James Bruce urgently.

Ray

1. Former Secretary of State George C. Marshall.
2. William D. Pawley had been U.S. Ambassador in Brazil, 1946–1948.
3. A brief summary of Mr. Pawley’s meeting with President Truman is contained in Department telegram 205, March 23, to Buenos Aires, p. 490. According to a memorandum of conversation, March 11, by the Chief of the Division of River Plate Affairs (Tewksbury), Foreign Minister Bramuglia had sent his nephew, Sohar R. del Campo, to the United States with personal letters (not printed) for General Marshall and Mr. Pawley, apparently in an effort to obtain help from the United States in solving Argentina’s present economic problems. (835.50/3–1149).
4. Julian C. Greenup, Counselor of Embassy for Economic Affairs.
5. Telegram 248 and airgram 113 are not printed.
6. Not printed.