Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

611.35/8–1754

Paper Prepared in the Office of South American Affairs¹

confidential

[Washington,] August 17, 1954.

Balance Sheet: U.S.-Argentine Relations

what united states wants from argentina

1. Cooperation against Communism. (This includes such bilateral cooperation as we may ask for, control of Communism within Argentina and support of our position in multilateral organizations.)

2. Cooperation on hemisphere defense policies and measures.

3. Cooperation on US policies regarding East–West trade. (Battle Act,² etc.)

4. An agreement by which US would obtain uranium from Argentina. (Negotiations³ now in progress.)

5. Good relations between US and Argentine labor organizations. This is a delicate problem and has not been a subject of formal discussion between our governments. (Obstacles continue to be: a) Argentine labor policies and b) US labor reaction thereto.)

6. Resumption as soon as possible of profit remittances. (US interests have over $80 million worth of pesos in Argentina which they are unable to remit owing to Argentina’s lack of dollar exchange.)

7. Argentine action to resolve outstanding problems of American meat packers in Argentina.

8. Argentine action to resolve the American & Foreign Power Company problem.

9. Argentine action to remove discriminations against US shipping (especially requirements that certain cargo be carried in Argentine bottoms).

10. Argentine compliance with certain provisions of US-Argentine Trade Agreement⁴ with which she is not now complying.

what argentina wants from united states

1. Noninterference by US agricultural surplus disposal programs in Argentina’s normal marketing. (Argentina has recently requested that US halt nonconsultative linseed oil sales and that we take joint action with Argentina to work out means of avoiding displacement of normal Argentine markets.)

2. No US import restrictions on linseed oil, tung oil,⁵ oats, meat from Tierra del Fuego, etc.

3. No increase on wool tariff.

4. Export–Import Bank financing for 120 million dollar Argentine integrated steel plant. If further Export–Import Bank financing available after this project, Argentina favors such financing for certain other projects: power plant for Buenos Aires ($26 million), compressor plants for pipeline ($3.4 million), chemical plant ($5.5 million).

5. US assistance in developing Argentina’s uranium possibilities. (Negotiations now in progress with AEC.)

6. Development of certain Argentine shipyards and drydocks. (Argentina has never defined what assistance it wants in this respect.)

7. US foreign investment in certain projects, especially petroleum extraction. (As yet Argentine laws regarding foreign investment have not been sufficiently favorable to attract US capital to increase its investments, though the Argentines appear to be sincerely trying to improve their legislation.)

8. US cooperation against Communism. (Perón has suggested to us a consultative hemisphere meeting on Communism, and has made certain other specific suggestions.)

9. Argentina has shown signs of desiring harmonious labor relations with the US but this has not come about because of specific disagreements between US and Argentine labor.

1. Drafted by Mr. Dearborn.
2. Reference is to the Mutual Defense Assistance Control Act of 1951 (Public Law 213), called the Battle Act after Representative Laurie C. Battle of Alabama, approved Oct. 26, 1951; for text, see 65 Stat. 644.
3. Documents pertaining to this subject are in file 835.2546.
4. Apparent reference to the Trade Agreement, with accompanying exchanges of notes, signed at Buenos Aires, Oct. 14, 1941, and entered into force provisionally, Nov. 15, 1941, and definitively, Jan. 8, 1943; for text, see EAS No. 277, or 56 Stat. 1685.
5. On Nov. 22, 1954, President Eisenhower announced that in view of the decision made by Argentina and Paraguay voluntarily to restrict their export of tung oil to the United States, he would take no action on the recommendation made by the U.S. Tariff Commission to establish a quota on tung oil imports. For text of the White House press release on this subject, dated Nov. 22, see Department of State Bulletin, Dec. 13, 1954, p. 912.