811.503135/3–2349: Telegram

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

confidential

281. During conversation other subject, Bramuglia volunteered statement he was disturbed over situation meat packers and endeavoring find solution. Foreign Minister added Perón and most members Cabinet convinced Atlantic Pact1 prelude war between US and Russia [Page 490] and early conflict inevitable. He says for this reason administration taking no measures sell Argentine products, thinking war will mean rapid purchases by US at high prices. Bramuglia states he is fighting lone battle against “her” (Mrs. Perón), Minister Transport Castro, Minister Commerce Barro, and the “so-called” Minister Hacienda Cereijo. Meantime, many industries suffering from inability import relatively small materials or equipment to continue operations. As often reported to the Department, Perón and others believe war inevitable. Bramuglia intimated that unless we help him, he will not be able hold out much longer. His plaintive appeal no doubt calculated spur us into helping situation so as to give him credit, but his statements that situation bad and Perón and associates think war inevitable, are well founded. Bramuglia expressed great concern over threats that meat packers and firms such as General Motors, Ford, International Harvester, Case Tractor, etc. will be forced greatly curtail or completely suspend operations. Bramuglia said expected courier today with replies his letters Marshall and Pawley.2 He intimated unless these replies received offering some hope, he was “sunk”. Local packers consider decree published March 21 authorizing payment 60 million pesos offers some relief, but about 70 million still due on losses prior to December 31, 1948 plus current losses since January 1, 1949. Public statement by Minister Economy Ares yesterday recognizes these losses and implies obligation Argentine Government remedy situation. These developments do not change recommendations contained Embtel 269 March 18. If 60 million pesos is paid packers plan deliver no categoric statement they will curtail or close down April 1, but will have to do this soon unless provision made take care current losses.

Ray
  1. Documentation relating to the signing of the North Atlantic Treaty and the formation of NATO is contained in volume iv .
  2. See footnote 3 to telegram 259, March 16, p. 488.