835.50/3–2949: Telegram
The Chargé in Argentina ( Ray ) to the Secretary of State
297. Mentioned to Bramuglia following points as possible prerequisites general understanding and solution Argentine economic difficulties and dollar shortage:
- 1.
- Satisfactory guarantees re Article 40.
- 2.
- Relief for American companies now being forced close down or suspend.
- 3.
- Remedy situation where appears desire Argentine Government gradually confiscate American business by forcing it out.
- 4.
- Guarantee remittance profits when dollars available, and liquidate outstanding obligations.
- 5.
- Greater participation in international organizations.
- 6.
- No shipping discrimination.
- 7.
- Adjust prices downward changing exchange rate if necessary.
- 8.
- Fair application trade agreement of 1941.1
- 9.
- Promptly implement air agreement.2
- 10.
- Freedom of press for US correspondents through mail, cable, radio, etc. Lack this freedom embarrasses our relations.
- 11.
- Permitting exports Argentina through recognized established trade channels.
- 12.
- Impossible Government control labor cost and must take steps enable American firms Argentina meet costs and continue operation.
- 13.
- Cattle raisers and meat packers fear expropriation and uninterested increase production. Prices too low and cattle sold at low weights causing big losses.
- 14.
- Local firms feel they are subjected gradual expropriation constituting confiscation as effective as if performed in single operation. Only remedy is reorientation Argentine political and financial economy giving American firms fair treatment.
I told Bramuglia I had no instructions but these suggestions based on unofficial memos from Department and conversations Ambassador Bruce and others. I said they might be revised or amplified by Department if latter desires continue conversations. Bramuglia said he would talk to Perón and cabinet ministers and call me tomorrow. He indicated hope give me some idea Perón’s reaction and if any hope reaching agreement, he would furnish list Argentine desires and requirements.
Please inform me urgently whether Department wishes me continue negotiations along these lines and if so whether it envisages possibility clearing matter through exchange note, signing agreement or other means. I think it would be desirable conclude commercial convention with Argentina covering all points desired but this would take time and in meantime hope progress can be made through notes. Bramuglia realizes seriousness situation and strongly desires take action.
However Perón and certain others will probably balk at some our conditions. I told Bramuglia I thought it futile US continue negotiations much longer unless Argentina could accept most our conditions in principle and also unless I had fuller authority from Department continue conversations with him.
- Text in Department of State Executive Agreement Series No. 277, and 56 Stat. (pt. 2) 1685; for related documentation, see Foreign Relations, 1941, vol. vi, pp. 387–401.↩
- No civil aviation agreement was signed by the two countries during 1949.↩