835.24/633: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 5:25 p.m.]
1318. For Ravndal from Ravndal. Department’s 974, June 30, 7 p.m. I have discussed your alternative plan with officials of the Central Bank, Colonel Lord, the Embassy and representative American businessmen and there is unanimous agreement that it offers a practical solution.
The only modification suggested is that the period should be one of 6 months rather than 3. It is felt here that production and shipping could be more readily coordinated over the longer period.
The Central Bank is prepared to ascertain and advise us before October 1 what will be Argentina’s import requirements for the first allocation period of 1943. The estimate will be based upon a monthly United States shipping allocation of 14,000 tons of cargo space plus whatever additional tonnage may be expected from Argentine vessels. If this should not be regarded as a reasonable basis the bank should be promptly informed.
As soon as the United States Government receives Argentina’s estimated import requirements it will communicate to the Central Bank the quantities of allocated products and the probable quantities [Page 364] of unallocated commodities in short supply which could be supplied to Argentina. (The Argentine Government would not wish to reserve shipping space for a commodity which cannot be furnished by the United States.) On this basis the bank will undertake to issue certificates covering all import requirements from the United States for the first 6 months of 1943. Every effort will be made to issue all such certificates during the month of October. Copies will be furnished to the Embassy for the information of Washington. The date upon which the certificate can be issued, however, depends in part upon the date when the above advice regarding quantities of products available is received.
The Central Bank agrees that the United States Government cannot and will not tolerate any distribution which would permit our merchandise to reach the enemy. It will in all cases consult with the Embassy before issuing a Certificate of Necessity. When it cannot escape issuing a certificate to a firm on the Proclaimed or Confidential List it will advise the Embassy in the expectation that the certificate will be dishonored.
In view of the need for elasticity in shipping priority from the United States due to possible sinkings of counted goods from Great Britain the Central Bank would prefer not to indicate shipping priority on each certificate. It has prepared a breakdown by commodities of Argentina’s import requirements under various tonnages of shipping space and requests that this breakdown plus the advice of its representative in Washington be followed by Port Cargo Clearance Committee in loading vessels for this country.
During July and August merchandise should be allowed despatch to Argentina under existing regulations. Effective September 1, however, no United States goods of any description whether allocated or unallocated should be permitted export to Argentina unless covered by a new certificate showing clearly that the shipment has been reviewed and has the support of the Central Bank. The purpose of waiting until September 1 to institute the new system is to give the Central Bank time to obtain from importers in Argentina full information as to the nature, whereabouts, and condition of manufacture of the goods that have been ordered whether or not covered by an export license and or Certificate of Necessity. Since the factor of merchandise supply of Argentina is in many cases more important than the question of acceptable consignee the Central Bank would like as much as possible of the goods which are now in ports to come forward. By September 1, however, the Central Bank will have examined all outstanding orders and will be able to designate which commodities both allocated and unallocated should be loaded so as most efficiently to make use of available shipping space. [Page 365] In case it should be desirable from the supply standpoint to let merchandise come forward which is now at the ports in the hands of firms not eligible to receive corresponding certificates the Argentine Government will name an acceptable consignee or will requisition the goods upon arrival for further distribution. In this latter case the Argentine Government will take into consideration the wishes of the United States Government to the effect that the distribution be made only to firms and entities who have access to the United States market.
The foregoing represents the opinion of officials of the Central Bank with whom the problem has been discussed and should not be construed as already having been formally approved by the Argentine Government.
The personnel needs will be discussed in a separate telegram. [Olaf Ravndal.]