Foreign Relations of the United States, 1955–1957, American Republics: Central and South America, Volume VII

236. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State¹

Buenos Aires, April 24, 1957—4 p.m.

1062. Reference: Deptel 1107, April 18.² Delivered President Eisenhower’s letter to President Aramburu³ yesterday and at same time presented certain considerations in connection with pending problems.

I noted Gainza Paz and Vicchi had talked in general terms about cooperation by US and American officials had talked to them in specific terms of problems involving American interests in Argentina.

I said our government sincerely felt it giving Argentina generous cooperation and naturally expected Argentina would make progress in carrying out offer made by Col. Benegas mission to solve pending problems which it had an obligation to settle without reference to possible loan.

President said meat packers problem well under way to solution.

With reference to ANSEC problem, he noted government had suggested to AFP that commission to fix indemnity for expropriated companies be appointed but that cases not be withdrawn from courts, and AFP had rejected this proposal. I said I assumed government still intended to solve this problem and President said that that appeared difficult to him. Only 9 months before elections and solution along lines company wanted would present real political problem to Argentina.

I asked President whether he meant to convey to me government’s definite decision not to attempt solution ANSEC problem. If this were the case it represented a new development and I would inform my government in that sense. I noted in this connection Argentina Government representatives continue inform US Government provisional government will solve ANSEC problem and I read from Department’s memo of conversation between Vicchi and Rubottom on April 10 Vicchi’s statement solution ANSEC problem clear responsibility of provisional and provisional government will solve it.

President said he would call meeting of government and give me definite answer later on. He did not want government’s position to be unclear.

Although President did not say so specifically, I deduce that his present view is that government has made an offer to AFP which government considers politically viable and company has turned it down. Onus for failure thus rests on company rather than government.⁴

Beaulac

1. Source: Department of State, Central Files, 835.00/4–2457. Secret. Repeated to Rio de Janeiro.

2. In telegram 1107 the Department reported that Gainza Paz was due to see Dulles, Humphrey, Waugh, and Black within the next few days, “after which scope and purpose his visit may be better defined.” Subject to those talks, the Department would review the question of economic aid for Argentina with the Export-Import Bank. (Ibid., 835.00/4–1857)

   Gainza Paz met with Waugh and Brand on April 23. According to a memorandum of that conversation, drafted by Bernbaum, he “repeated the exposition he had already made to President Eisenhower, the Secretary of State and to the Under Secretary of the Treasury.” (Ibid., 835.10/4–2357) No memorandum of Gainza Paz’s conversation with Burgess or any record of conversations with Humphrey or Black were found in Department of State files.

3. Transmitted to the Embassy in telegram 1096 to Buenos Aires, April 17. The letter reads in part: “For my part, I am very pleased to have had the opportunity of discussing these matters with Dr. Gainza Paz, and I wholeheartedly agree with you that such a personal exchange of views is decidedly helpful. You may be sure that we here in Washington will continue to give the closest attention to problems of mutual interest to our two governments.” (Ibid., 611.35/4–1757)
4. In despatch 1295 from Buenos Aires, April 26, Beaulac enclosed memoranda of conversations which he recently had with the Argentine President, Minister of Commerce and Industry, and Minister of Foreign Affairs regarding the ANSEC problem. “The President indicated that the kind of settlement the company wanted would be very difficult for the Provisional Government to bring about,” he noted. “He declined to say, however, that the Provisional Government had given up the idea of settling the problem and indicated that he would call a meeting of the Government in order to define the Government’s position.” (Ibid., 835.2614/4–2657)