Foreign Relations of the United States, 1958–1960, American Republics, Volume V

228. Memorandum of a Conversation, Buenos Aires, November 21, 1960¹

Buenos Aires, November 21, 1960

PARTICIPANTS

• President Arturo Frondizi
• Minister Orfila, Argentine Embassy Washington (who acted as interpreter)
• 2 or 3 members of President Frondizi’s Staff, including Presidential Chief of Protocol
• U.S. Governors visiting Argentina²
• Ambassador Rubottom
• Messrs. Crihfield, Nutter and Bermudez of International House, New Orleans

The Governors called on President Frondizi at twelve O’clock yesterday at their request, feeling that the formal visit to the Casa Rosada had not provided them with sufficient opportunity to engage in give-and-take discussion with the Chief Executive. The meeting lasted approximately one hour and forty minutes and was characterized by very frank expression on the part of the President and the various Governors who spoke. The President seemed to enjoy the meeting and the Governors, without visible exception, displayed their own pleasure at the opportunity to probe further into the President’s thinking about current problems.

Governor Brown started by asking the question: “What should I tell prospective investors about the Argentine situation? Should I advise them to invest here?” This theme was returned to by one or two other Governors, and the President’s basic reply was as follows: Prospective investors should be told that they are welcome in Argentina. They will find that both the juridical position and the political climate for their investments are favorable. There is ample proof of this in our record of the past few years. The serious pending problems we had with earlier investors in Argentina have almost all been overcome. The meat packers problems are largely solved. The problem with American and Foreign Power, involving expropriation of some of their property, is in the last stage of solution and awaits only the decision of the Chief Justice of the Supreme Court. We have devised a formula which has permitted private American oil companies to work under contract with our national oil company, YPF. The country is approaching self-sufficiency in oil and is improving in the electric energy sector, and both of these sectors are important to prospective investors. To repeat, investments—large, medium, and small—are welcome in Argentina and will be given the protection of our laws without discrimination.

Governor McNichols, Chairman of the Governors’ Conference, recalled their conversation with Minister of Economy Alsogaray, during which the Governor had posed this question: “In many of our States, like mine, Colorado, mines and other industries are either curtailed in activity or shut down because of imports from abroad; we recognize the need to import from abroad, but we have our domestic problems as well; I think that we should consult more closely as nations to resolve our mutual problems; what can we do about this difficult situation?” Governor McNichols then said that he had not been satisfied with Minister Alsogaray’s answer: “That is Senator Kennedy’s problem when he assumes the Presidency.” Governor McNichols stressed his belief that Argentina and other countries had to face up to this question as well as the United States.

The President went into a detailed discussion of Argentina’s need to export if it is to achieve success in its economic development and stabilization program. Some of its exports do go to the United States and, admittedly, are competitive with the United States. The United States, in turn, ships its grain and other products to some of Argentina’s neighbors under the PL 480 programs, and these are cutting into Argentina’s traditional markets. Argentina needs to sell more to the United States in order to buy more from the United States. It is in the United States’ interest that Argentina overcome its economic problems and become a strong and prosperous nation, and we must hope that other countries in Latin America do the same. These are serious problems which require the best effort of all of us, and they can be best attacked by regular consultation and discussion.

Governor Handley said that the United States was already importing large quantities of meat; it is forecast that within ten years the United States will need much larger quantities of meat as our population increases faster than our meat production; can Argentina help to supply our needs for this vital food? The President seized on this question to point out that Argentina hopes to sell more meat to the United States. It does have a foot-and-mouth disease problem, but they hope to rid the country of this scourge by attacking it one zone at a time, moving from the south, where the disease does not exist due to climate, to the north. Argentina had not been happy about the reasons advanced by the United States eighteen months ago for placing a ban on her cured meats, since the tests had not been carried out on actual Argentine imports. Argentina had lost approximately 30 million dollars per year of exports by this ban.

I told the President that, according to all the information I had been able to gather, Argentina had not suffered a loss in the amount he mentioned, since the meat that would have been cured had been canned by the frigorificos. The President smiled and replied that, even if Argentina had not suffered a net loss of the amount mentioned, that was the hoped-for increase in amount to be sold to the United States had the ban not been placed in effect.

Governor Hollings then asked the President about Argentina’s attitude toward Castro, concluding with words to this effect: “Unless you and the rest of Latin America are alert to the Castro threat, there will be no more investments and you may find your own countries threatened by communist takeover.” The President reacted very sharply to this statement, moving to the edge of his seat and scarcely waiting until the Governor had concluded his statement before answering. The gist of the President’s remarks were: Argentina’s attitude toward Castro has been clear from the very beginning. The notes delivered to the Cuban Government by the Argentine Ambassador, who incidentally had worked very closely with the U.S. Ambassador in Cuba, had left no doubt of Argentina’s understanding of the threat posed by the Castro government. Argentina’s position at the various meetings of Foreign Ministers had been notably clear, and she had cooperated wholeheartedly with the United States at those meetings. Argentina’s delegate to the Inter-American Defense Board had taken the lead in asking the Cuban delegate to define his government’s position, “Is Cuba with us or against us?”; in fact, the Argentine position on the IADB had been clearer than that of the United States; the Governors need have no fear about Argentina’s awareness of the Castro threat to the hemisphere, nor did investors need to concern themselves on this point.

I spoke to Governor Hollings and a small group of Governors near him at the close of the meeting with the President to reassure him about the validity of President Frondizi’s remarks. Several of his colleagues said to him, “Well, you asked for it and got the answer.” Governor Hollings replied: “I certainly did!”

Governor Edmondson arose to express the Governors’ appreciation for the President’s having received them again. Governor Freeman then presented the President with a gift from the Governors’ Conference, an Indian peace pipe.

1. Source: Department of State, ARA/EST Files: Lot 62 D 420, Official Guests, Visits July–December 1960. Confidential. Drafted by Rubottom.
2. Between November 13 and 20, a group of 28 U.S. Governors accompanied by their wives, aides, and some press representatives, arrived in Buenos Aires during the course of a visit to Argentina and Brazil.