811.503135/3–2849: Telegram
The Chargé in Argentina ( Ray ) to the Secretary of State
294. Saw Perón and Bramuglia today and stressed Department’s concern over provisions article 40 Argentine constitution and emphasized extent this article increases difficulty those in US endeavoring improve relations Argentina. (Deptel 205, March 23) Perón said only one American company, namely American and Foreign Power could possibly be affected by provisions regarding “public services.” He cited example purchase telephones and British railways and said he could give assurances he had no intention expropriating any American companies. I replied such assurances entirely unsatisfactory. Perón then suggested I inform Argentine Foreign Office by note exact nature assurances my government desires. I replied I would request instructions. Perón emphasized provisions article 40 constituted authorization [Page 492] and not obligation expropriate. He said he could give written assurances that no American company other than the power and light would be affected and that such could not be expropriated except with prompt and adequate compensation which would be on basis purchase rather than expropriation. Bramuglia added that on receipt note from US he would consult President and legal advisers and give us reply which he was confident would be satisfactory and entirely within provisions constitution. Perón stated he could not guarantee any new company coming to Argentina against application article 40, but thought he could give satisfactory written assurances that the one public utility company affected would not be expropriated but would be purchased if such were possible. He added he also could give assurances that companies other than public utilities would not be classed as public services and subject to expropriation. Bramuglia suggested Department authorize me include in note mention Department’s concern over situation meatpackers and other US companies in Argentina. Bramuglia thinks only mention should be made of this without going into detail and that this will afford him basis for endeavoring find satisfactory solution.
Perón said he was shaken by feeling in Department that article 40 was such serious matter. I suggested remedy would be giving us adequate assurances remove our concern. He repeated he felt confident he could do this.
Perón then remarked that we seem to be making no progress re overall understanding and settlement financial-economic difficulties. I said I shared this belief. Perón and Bramuglia then inquired whether it would be possible effect exchange notes or conclude agreement or convention giving American business protection we desire and make it possible take steps clear up difficulties. I replied I had no authority exchange notes or make any agreement but I agreed we should try. Perón suggested I have further conversations Bramuglia and tell him what we wished in line protection and other guarantees. I have appointment with Bramuglia tomorrow and on basis communications and memoranda from Department will present list of what we consider adequate guarantees for American business. Bramuglia said he would then state what Argentina desires and we could endeavor present concrete proposals to Department. My conversations with Bramuglia will be on clear understanding I have no authority make any commitment whatsoever and can only make proposals to Department for consideration.
Perón stated prices meat offered by British are ridiculously low and do not constitute good business for Argentina. He was particularly bitter towards British.
[Page 493]Perón was most cordial and strongly emphasized his recognition necessity reaching agreement with US. He added he considers such understanding indispensable.
I need not stress desirability reaching political and economic understanding with Argentina in interest hemisphere solidarity and our political and business relations with Argentina. I strongly feel we should make prompt effort reach understanding and that if Argentina will make necessary statements to us and give us required guarantees including protection American business interests, it would be worthwhile for us to make sacrifices on our side in order conclude satisfactory arrangements. Perón agreed we have come to point where understanding must be reached and Argentina must take certain steps in order to straighten out situation.
Text letter I handed Perón based on Department’s instructions and full report being sent airmail.1
- The letter was transmitted under cover of despatch No. 227, March 28, from Buenos Aires; neither printed (811.503135/3–2849).↩