811.503135/3–1649: Telegram
The Secretary of State to the Embassy in Argentina
205. Pawley’s interview with President related principally to differences opinion re prospective ECA financing of Eur purchases Arg and to US desire to implement any commitment made urtel 259 Mar 16. Gen Arg econ situation also discussed but this Govt has no immed plans for extending financial assistance Arg and any such assistance wld unquestionably involve full discussion major problems affecting US interests.
[Page 491]Arg Govt of course wholly mistaken if it believes threat of expropriation will hasten assistance of any kind since reverse true. You cannot stress too strongly extent to which Art 40 in new Constitution increases difficulty those in US Govt striving improve relations Arg.
Urtel 269, Mar 18, suggest you once more inform Bramuglia and Perón US concern situation which threatens operations packing companies. Press desps indicate decree authorizing payment 60 million pesos issued but make no reference payment being loan. A loan obviously provides no relief for losses from increased labor costs. Bruce states it was understood that direct compensatory payments wld be made to cover Govt’s wage adjustments over which packers have had no control. Correction basic difficulties might forestall drastic reduction operations and enable packers expand US market thus cooperating in relieving dol shortage.
Bruce, Dept and other agencies anxious assist Arg solve present serious dol problem but coop action Arg essential if any results to be accomplished. Recent quotations to Army for fresh meat from Mex and Braz are below Arg prices. Arg wool prices also out of line. Withdrawal from wheat negots,1 approval Art 40, and restrictive measures which limit operations established exporting firms make US coop efforts most difficult.
- Reference is to the discussions leading to the International Wheat Agreement, signed at Washington March 23 to April 15, 1949, and entered into force July 1, 1949; text in Department of State Treaties and Other International Acts Series (TIAS) No. 1957, and 63 Stat. (pt. 2) 2173.↩