835.5151/12–649

Memorandum of Conversation, by Mr. Albert F. Nufer of the Bureau of Inter-American Affairs

secret
Participants: Ambassador Jerónimo Remorino
Dr. Julio M. Juncosa Seré
Dr. José J. Brignoli
ARA—Mr. Miller
Mr. Nufer
EC—Mr. Tewksbury
Mr. Atwood

At Mr. Miller’s suggestion, Ambassador Remorino, Dr. Juncosa Seré and Dr. Brignoli met with him on December 6, 1949.

Mr. Miller referred to his conversation with Ambassador Remorino of December 1 when the Ambassador inquired whether there was any possibility of Argentina’s obtaining assistance from the Export-Import Bank in the form of export credits to American exporters to finance the shipment of agricultural equipment and other essential materials to Argentina. (This same question had been raised by Dr. Brignoli on November 14 shortly before his and Dr. Juncosa Sere’s trip to New York, Boston and Philadelphia in a conversation with some of the U.S. members of the Joint Argentine-U.S. Committee of Commercial Studies.1)

Mr. Miller said that pursuant to the Ambassador’s inquiry, he, together with Messrs. Nufer and Atwood and other officials of the Department, had met with the Chairman and leading officials of the Export-Import Bank to place the matter before them. The Bank, after an exchange of views, stated it was not prepared to express an opinion with regard to the question raised until it had completed a study, which it had just begun, on Argentina’s need for financial assistance and its ability to service a credit or loan. Mr. Miller added that while the Department had no objection to any financial accommodation [Page 517] which the Bank on the basis of its studies might consider practicable, it was necessary to emphasize that the final decision in the matter would, of course, rest with the Bank. He pointed out, however, that the mere fact that the Department had taken the initiative in placing the matter before the Bank represented a new and important step in our economic relations with Argentina.

It was mentioned to the Ambassador that the Department had offered to furnish the Bank with all information in its possession on Argentina’s economic and financial situation; that this information, however, might not be sufficient for the Bank’s purpose; and that, therefore, it was assumed the Argentine Government would furnish any additional data that might be required. Ambassador Remorino said he could assure us that Argentina would be only too glad to furnish any information that might be desired in accordance with the policy already adopted in furnishing the Argentine delegation on the Joint Argentine-U.S. Committee of Commercial Studies with all the data the Committee needed in carrying out its studies.

Mr. Miller also told his visitors that he thought it would be inadvisable for them or for the Argentine Government to attempt to-anticipate the Export-Import Bank’s decision. As he had already mentioned, the entire matter depended, in the first instance, upon the outcome of the studies which the Bank had initiated and on the Bank’s interpretation of the conclusions to be drawn therefrom. He also stressed the importance of keeping this matter in strict confidence as any premature statements or reports would doubtless be prejudicial. Ambassador Remorino said he understood this perfectly.

Ambassador Remorino told Mr. Miller that he had intended to leave for Buenos Aires early in December but that he now thought he would postpone his departure until December 20 or 21 so as to take back with him some word from the Bank. Mr. Miller asked him not to postpone his trip on that account as it was improbable that the Bank would have completed even a preliminary survey by that time, as it only had a small staff and as investigations of this kind were necessarily long drawn out. Ambassador Remorino seemed to understand this fully.

  1. In a memorandum of November 25, 1949, to Willard L. Thorp, Assistant Secretary of State for Economic Affairs, Mr. Miller said in part, with reference to the Argentine request for financial assistance:

    “I believe that this matter is of such importance to our overall relations with Argentina and to our hemispheric policy that the Department should strongly urge that the Export-Import Bank give sympathetic consideration to a formal request to be made by appropriate Argentine officials. It is believed that such assistance.

    “1. Would be a powerful factor in promoting closer political and economic relations between the United States and Argentina.

    “2. Would give the United States, in return, an opportunity to influence the Argentine Government toward sounder business practices including the adoption of further measures to eliminate government control of commercial and financial operations and artificial trade barriers in general.

    “3. Would redound to the direct benefit of American investors in Argentina and of American exporters.” (835.51/11–2549)