611.3531/1447: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 11 p.m.]
9. Confirming my conversation by telephone with Hawkins I had my talk with the President this afternoon. The Foreign Minister was also present. Neither the President nor Cantilo had a formal reply ready to our note of January 2 (I understand this will be ready Monday). The President explained in some detail why it was not possible to accept any form of quotas: in other words, our last proposals had not changed the situation. The President used very much the same arguments as those expressed in the various notes and in conversations with other officials that he did not feel what we were prepared to offer would justify their giving up their present system of import control or give them sufficient opportunity for trade expansion.
The President said that there appeared to be a wide misconception in the United States as to the danger offered to American products by competing Argentine products, exports of which he insisted could never seriously threaten our markets. He seemed to feel that the acceptance by Argentina of quotas would tend to confirm this impression that Argentine products could constitute serious competition.
The President hoped that at some later more auspicious occasion when perhaps world conditions were more settled we might approach the situation again and reach a solution which he felt most important from every point of view. The atmosphere was most friendly and he stressed that in the meantime this temporary check must not be permitted in any way to affect our relations which had never been more cordial.
The President agreed to the issuance of a joint communiqué announcing the termination of the negotiations which the Foreign Minister is now preparing using our draft as a basis but making certain changes in the reasons why the Argentine Government found it impossible to accept our proposals.
In my presence the President told Cantilo that he felt that any further statement issued by the Argentine Government summarizing the negotiations should be brief and not go into detail as to individual offers, et cetera.