835.2553/4–2650: Telegram

The Secretary of State to the Embassy in Argentina

confidential

241. FYI SONJ 1 and Cereijo reached agreement Apr 252 providing supply 20, 000 barrels crude daily for 6 months and 10,000 to 20,000 barrels fol 6 months at discretion SONJ. Agreement previously reached Ultramar providing 5,500 barrels daily for 1 year. Each agreement payable3 in dols over 2-year period. Provision made for early negot long-term agreement. Amer Fon Power offered sell basis one-fourth cash one-half over 10 year period one-fourth reinvested. Cereijo countered with one-half reinvested and conversations will continue BAires about May 15. Moving picture cos attempting reach agreement based on various quid pro quos including local investment one-half earnings but no agreement yet.

Acheson
  1. Standard Oil of New Jersey.
  2. Not printed.
  3. By the Argentine Government: the oil was to be imported into Argentina under dollar credits granted by the oil companies themselves.