835.10/5–1550: Telegram
The Acting Secretary of State to the Embassy in Argentina
287. Cereijo and consortium private banks reached tentative agreement 75 million dol credit to be obligated within two years and carrying interest 3½ percent on obligated amounts, ½ percent unobligated amounts. Both bankers and Arg Govt will study several possible amortization plans which depend partly amount gold guarantee which agreed will be either 65 or 75 million.1
Amer Fon Power continues press for favorable settlement its claims as quid pro quo ExImBank credit but such quid pro quo will not be established. However Dept has assured all concerned that it will support strongly a settlement this problem. Eduardo Salazar will conduct negots with Argentines behalf Amer Fon Power which now sched for June 5.
Cereijo signed May 12 five-year agreement with Amer Motion Picture Assoc. Agreement provides unlimited film entry, withdrawal 1.1 million dols annually to apply first against backlog, annual investment equal amount Arg, and probably includes commitment by Amer film [Page 717] cos on world-wide distribution Arg news shorts and documentaries.2
Working parties drafting preliminary English-Spanish text supplementary FCED treaty for transmission Emb this week if possible. Juncosa Seré states he will direct clearance with Arg Govt depts and anticipates little substantive objection. Will determine place signature later.
Air route negots3 and exchange notes reciprocal exemption transport cos bogged down last two weeks, apparently because Argentines preferred not link any further actions to credit negots. Arg Emb queried FonOff two weeks ago re alternatives mentioned Deptel 239, Apr 254 but no reply. Arg Amb prior leaving to accompany Cereijo BAires informed Arg Emb staff exchange notes reciprocal exemption wld await his return.5
Cereijo indicated someone wld return Wash within several weeks to complete ExImBank arrangements. If you shld have opportunity to learn anything about this or Arg plans re subjects preceding para keep Dept informed.
- A brief discussion of this negotiation appears in Stanton Grifils, Lying in State (Garden City, N.Y., Doubleday, 1952), p. 258.↩
- An agreement providing for importation of American motion pictures into Argentina for 5 years was signed on May 12, 1950, in New York City by Sr. Cereijo and Eric Johnston, President of the Motion Picture Association of America. A copy of the agreement was sent in despatch No. 897, June 1, 1950 (not printed), from Buenos Aires. (835.452/6–150) File 835.42 for 1950 and 1951 contains information on difficulties that prevented implementation of this agreement up to the time an Argentine Government decree of June 29, 1951, permitted actual importation of films.↩
- Reference is to talks between the two governments held for the purpose of signing a route annex to the Argentine-United States Bilateral Air Transport Agreement signed in Buenos Aires May 1, 1947. In a letter of February 12, 1951, to Delos Rentzel, Chairman of the Civil Aeronautics Board, Walter A. Radius, Director of the Office of Transport and Communications Policy, stated that negotiations were broken off in October 1950, “… due to the inability of the two Governments to reach an agreement on the actual description of the routes to be operated.” (611.3594/11–2950) File 611.3594 for 1950 includes material outlining fully the viewpoints of the two governments in the matter.↩
- Not printed.↩
- For text of the exchange of notes between Secretary Acheson and Ambassador Remorino in Washington, July 20, 1950, embodying the agreement for relief from double taxation on earnings derived from operation of ships and aircraft, see TIAS No. 2088 or United States Treaties and Other International Agreements (UST), vol. 1, p. 473. Text is included also in the Department’s press release of July 20, which is printed in the Department of State Bulletin, August 7, 1950, p. 216.↩