800.6363/1185: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received 6:34 p.m.]
1136. Reference Embassy’s telegram 1078, May 21.36 Petroleum negotiations are completed in principle and final details are expected to be submitted to the Department for consideration about June 1. Probably 36,000 tons of petroleum industry material mainly for use in extending existing fields to maintain current production will be expected in exchange for 320,000 cubic meters of petroleum delivered Uruguay and Paraguay only.
Except for army reserve of 58 drums, YPF are without ethyl fluid. If it is United States policy that there is no objection to aviation gasoline if currently consumed, about 150 drums of ethyl fluid over 12 months would seem justified and adequate; its release as part of the current negotiation would be very helpful but not essential.
Embassy’s telegram 1113 of May 2736 refers to this same situation so indication of Department’s basic policy by telegram is urgently requested.