835.10/3–1650: Telegram

The Acting Secretary of State to the Embassy in Argentina

confidential

153. For Ambassador from Miller. Tewksbury1 and I have just had long talk with Cereijo and Remorino and have discussed with them frankly contents urtel 240.2 Cereijo3 has already told Amer press at conf yesterday that he does not believe in intergovernmental loans, that no such problem is on his agenda. He is willing that you state in answer to press question that Cereijo’s sole purpose in coming to US is to attend Special Session IA ECOSOC and thereafter to tour country for purpose familiarization. You could also state that as incidental to his trip he will discuss econ problems of mutual interest to both countries. If you deem it necessary in order to dispel exaggerated reports, no objection your having question planted.

We have also had frank discussion with them as to possibility ExImBank credits for funding of backlog or credits to Amer exporters of machinery. Cereijo is obviously most anxious to get moving along this line. Accordingly it was agreed at our conf that Dept wld arrange for Remorino to take Juncosa and Brignoli to Bank for sole purpose of giving Bank additional statistical info which they want before any consideration cld be given to any financing involving Arg. At same time Cereijo reiterated determination to settle various problems involving Amer business which were discussed during my visit and he specifically stated that he intended while he is here to see petroleum companies and Amer and Foreign Power. He stated that he had full powers to settle their problems. He made no mention of gen Frigorifico problem although he has already seen Taylor re Swift holding company and will see him again on 27th. He also said that questions which I raised re Panagra and Braniff have already been settled.

Cereijo also said that he wanted to proceed immed with discussions concerning econ treaty and we will set up informal working group next week. All of foregoing is of course to be kept confid insofar as pos [Page 705] and no press statements will be made either about ExImBank discussions or treaty discussions.

We will of course stick strictly to line which you and I followed in BA and I will constantly keep before Remorino and Cereijo the importance of their settling outstanding Amer business problems before we can do anything financially involving Arg. I have also warned Cereijo that ExImBank discussions and also treaty discussions will undoubtedly be prolonged and that he must not expect anything concrete while he is here.

We will keep you informed continuously as to progress our discussions and at appropriate point I will suggest your coming up here. However, any trip on your part wld be so widely publicized at this point that we must know much more clearly than we now do where we are going. Pls bear in mind in this connection that I have just returned to office today and have not had chance of discussing any of this with either Thorp4 or Gaston. After I have gotten my feet on the ground I will give you my appraisal of the possibilities.

In any case, from Cereijo’s attitude today, the honeymoon is still on. [Miller.]

Webb
  1. Howard H. Tewksbury, Director of the Office of East Coast Affairs.
  2. In telegram 240, dated March 16, 1950, Ambassador Griffis had said in part that there were rumors in Buenos Aires that he had threatened to resign unless Argentina were given an immediate loan of $600 million and had asked permission of Mr. Miller to dispel the rumor, possibly by means of a planted question to himself. (835.10/3–1650)
  3. Minister Cereijo had arrived in Washington on March 15.
  4. Willard L, Thorp, Assistant Secretary of State for Economic Affairs.