811.503135/3–1849: Telegram

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

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269. Representatives Armour, Swift and Wilson, American meat packers including Judge Cooney of Wilson and Tom Taylor of Swift, called today and stated situation packers has reached such crisis due continued losses they feel compelled inform Argentine Government they will have to reduce drastically operations, as of about April 1, and dismiss personnel to bring expenses down to level justified volume business. Suggest Department instruct me inform Bramuglia and Perón urgently concern US Government over situation now existing. Meat packing industry here losing money at rate of about 15 million pesos per month.

Argentine Government has drafted decree authorizing payment 60 million pesos described as a loan to the packers. Payment of 60 million pesos was promised for purpose partially covering losses over period 27 months prior December 31, 1948. This now described as loan to cover labor costs. No mention has been made of provision to cover losses beginning January 1, 1949. Such condition unacceptable.

Packers fear that if they reduce as planned, government would immediately appoint interventors which would amount to first step to expropriation or at least partial expropriation.

I believe I should be instructed tell Bramuglia and Perón that Ambassador Bruce and others making every effort increase Argentine exports to US but situation forced on packers and other American business interests here will make it impossible to render effective assistance.

Ray