234. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State1
1048. Reference Embtel 1038 April 17;2 Deptel 1085 April 16, 1957.3 Reference Vicchi Gainza Paz conversation Embassy tends to think as follows: As Vicchi said relations with Argentina should receive greater consideration than problems individual United States companies and in this connection: A. Provisional government has made progress in stating publicly and in taking action demonstrating desire cooperate United States and other countries, especially in political field; B. It also has indicated desire settle economic problems importance United States companies. It has finally submitted plan (contents unknown) to economic council for settling past accounts packing companies (On the other hand, problem AFP has actually worsened since government promised to solve it.); C. Although Argentina has pressing dollar problem and short-term economic outlook not good, this in part result fortuitous circumstances principally short corn crop and high cost imported fuels result Suez crisis; D. Because of basic resources long-range outlook for Argentina good, if country adopts adequate economic policies.
Foregoing does not necessarily suggest United States should make additional loans Argentina now. In that connection, following considerations pertinent:
A. To grant additional loans now in absence greater progress on pending problems United States companies would probably encourage further delay solutions those problems; B. It would make it easier for government postpone difficult decisions in fields petroleum, electric powers; C. Furthermore, government becoming lame duck. No assurance elected government will have same desire cooperate with other governments as this one.
Under circumstances it appears best course us to pursue would be; A. Continue press solutions AFP and packers problems; B. Continue express desire close cooperation; C. Indicate if approached regarding further loans that solution AFP problem and packers [Page 469] problem as promised by Argentina in connection earlier loan negotiations needed in order place us in position to justify further Export Import Bank loans.
Especially because we failed to make packing and AFP problems conditions for steel plant loan under Peron, we may find it necessary agree allocate remainder $100 million by provisional government.
- Source: Department of State, Central Files, 835.00/4–1757. Secret.↩
In telegram 1038 the Embassy offered its observations on the views expressed by Vicchi in Washington. The telegram reads in part: “Loans would not help Argentina solve basic problems unless adequate economic policies adopted and help of private capital obtained. Solution AFP and meat packers problems would encourage foreign capital to cooperate and would help justify further loans by US.
“No Argentine official has ever alleged to me political difficulty in way of solving AFP and meat packers problems.” (Ibid.)
↩- See footnote 4, Document 231.↩