611.3531/895: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received August 23—12:56 a.m.]
135. Department’s 131, August 19, 10 p.m. The following is translation of the memorandum which the Minister for Foreign Affairs delivered to me at 8:00 o’clock tonight.
“1. The Argentine Government has received with satisfaction the memorandum of the Government of the United States in which the latter says it is disposed to announce publicly its intention to negotiate a reciprocal commercial agreement between both countries and hastens to express its agreement in order that the said announcement may be made simultaneously by both Governments on the date indicated.
2. The Argentine Government also shares the sentiments expressed by the Government of the United States that an understanding has been arrived at on the general bases for the negotiations and it is convinced that the differences of interpretation in the application of the quantitative regulations by products to which reference is made in the second paragraph of the memorandum may be duly clarified during the negotiations.
The Argentine Government considers that upon applying the quantitative regulation of imports for the greater efficacy of the system of exchange control—applying the same with a general character to all countries—it has satisfied fully also the principle formulated by the Government of the United States, contrary to the system of bilateral regulation of trade, and has thus removed the fundamental obstacle which had hindered previous negotiations.
The Argentine Government also considers that the choice of certain representative periods for the application of quantitative regulations is generally acceptable. But it will be necessary to proceed with flexible criteria with respect to certain special cases in order to avoid serious disturbances in the development of our trade with other countries.
However, even in those exceptional cases the Argentine Government in order to avoid any action which might be interpreted as discriminatory is disposed to apply the regulations in such a way as to prevent diversion of imports from neutralizing the restrictions applied; also the same rate of exchange would apply to imports of a given article of any country. The inherent flexibility of the system as well as the mutual spirit of cooperation which animates both Governments, will make it possible to find equitable formulae as circumstances may require.
3. The Argentine Government also agrees in general with the program of work outlined in the memorandum and it shares the desire of the Government of the United States that the general provisions of the agreement may begin to be examined forthwith. The Argentine Government would prefer for the time being that the negotiations take place in Buenos Aires, without prejudicing their being terminated in Washington once the fundamental questions are decided upon.
Buenos Aires, August 22, 1939.”
Unless advised to the contrary the Foreign Office intends issuing a statement for release here in the afternoon papers of Wednesday August 23 probably similar to the one included in the Department’s 132 of August 22, 5 p.m. which has just reached me.