203. Memorandum of a Conversation Between President Frondizi and the Chargé in Argentina (Beaulac), Buenos Aires, November 5, 19591
SUBJECT
- Military Credits
The President stated that he had just heard from Ambassador Del Carril regarding our inability to deviate from the usual three-year credit terms on the sale of military equipment desired by Argentina. He stated that he was disappointed but that since the equipment was so greatly needed by the Argentine Armed Forces, instructions were being promptly sent to the Embassy in Washington to accept these terms.
I explained to him again the circumstances surrounding credits for military equipment which had made it impossible to work out any more liberal terms, as had originally been hoped by the Latin American Division of the Department. He said he understood and would go ahead.2
- Source: Department of State, Central Files, 735.56/11–959. Confidential. Transmitted in despatch 730 from Buenos Aires, November 9.↩
- On November 19, the National Advisory Council advised the Departments of State and Defense that it offered no objection to their consideration of a credit of $11.1 million to Argentina to assist in financing the sale of military equipment and services totaling $12.35 million under the terms of the Mutual Security Act of 1954, as amended. The credit was to be repaid in U.S. dollars in semiannual or annual installments over a 3-year period with interest at the rate of 3½ percent per year. (Memorandum from Bell to Irwin, November 27; ibid., 735.56/11–2759)↩