155. Telegram From the Ambassador in Argentina to the Department of State 1

Soaec 40. Meetings Committee III International Trade and Committee IV Inter-American Trade August 21–24 completed organization of committees and working parties and agreed division of trade proposals among them. English translations now available. Preliminary explanation some proposals made but substantive discussion and debate in committees scheduled begin August 26 and be completed if possible August 28.

Commodity problems comprise principal issues Committee III. Proposals include Inter-American meetings and organizations to consider [Page 538] problems lead, zinc, and other metals; special committee to study means moderating effects fluctuations prices basic products; IA–ECOSOC study possibility inter-governmental agreements establishing “normal” prices and instituting systems credits to compensate exporting countries part of their revenue loss when prices below normal and amortization credits when prices above normal; prior consultation surplus disposal and recommend countries avoid chronic overproduction or surplus.

Not yet clear as to intent of Costa Rican proposal for coordination of institutions for stabilizing the prices of agricultural products. Committee III also has Bolivian proposal that member states take necessary legal steps to assure that assets of foreign state banks immune to attachment by private parties in advance definitive decree judicial proceeding. USDel hopes to induce committee action more congenial US position than these proposals.

Major subject Committee IV is encouragement further work on plans for developing regional market. Hope large number parallel resolutions can be consolidated into one or two general resolutions capable of receiving general approval including US. Some proposals have been made for exceptions MFN which US cannot approve but uncertain yet whether proposers will make these serious issue. Committee IV also has Peruvian proposal to create Inter-American Institute of Immigration. USDel doubts this directly related to trade or clearly justifiable other grounds. Hope, however, proposal can be modified to be unobjectionable to direct US interests if majority in committee prove to favor some action of this type.

  1. Source: Department of State, Central Files, 365/8–2657. Official Use Only.