188. Telegram From the Secretary of State to the Embassy in Argentina1

935. For Ambassador from Holland. Quite appreciate views contained your 840 and agree obvious undesirability pushing Perón to point endangering whole project.

Nevertheless, Dept extremely reluctant accept Argentine offer without further effort impress forcefully on Perón and Gomez Morales highly injurious effects delay in authorizing remittances might have on our relations. Highest circles of Argentine Government should be made fully aware recent revolt has focused U.S. opinion on these relations, and considerable body sentiment here is prepared support growing pressure U.S. business in opposing further economic cooperation with Argentine. In my view this pressure can be lessened, [Page 371] and Department’s position justified, by prompt action on remittance problem by Argentines. As you know, the amount itself is of secondary significance; early public evidence Argentine good faith by announcement of plan under which remittances would begin in near future, and not six months hence, would be exceedingly constructive.

As stated Deptel 919,2 I have told Paz I regard timing feature of Argentine proposal unsatisfactory, and he subsequently informed me he had conveyed my views Perón. Particularly in light this development, request you reconsider whether this not the time persuade Perón of seriousness U.S. Government attaches this question.3

Dulles
  1. Source: Department of State, Central Files, 811.05135/6–2955. Confidential; Priority. Drafted and approved by Watrous.
  2. See footnote 9, supra.
  3. In despatch 31 from Buenos Aires, July 7, the Embassy reported that, pursuant to instructions from the Department, officers of the Embassy discussed the remittance of earnings on U.S. investments in Argentina with Argentine officials on July 7. The U.S. representatives mentioned to the Argentines the figure of $5.3 million as a projected total for remittances to U.S. firms. “Agreement will probably be reached on the commencement of remittances in 1955,” the despatch noted, “but it may be necessary to recede from $5.3 million as the amount.” (Department of State, Central Files, 811.05135/7–755)