840.51 Frozen Credits/9682½
The Chargé in Argentina (Reed) to the Secretary of State
[Received March 9.]
Sir: Referring to the Embassy’s despatch No. 8661 of February 10, 1943,72 stating that a study was being made here of the present status of the dollar-currency market, I have the honor to enclose73 a memorandum of the survey which was made by a local American businessman. The Embassy is now giving consideration to recommending the inclusion on the Proclaimed List of those firms that are failing to comply with the Argentine controls regarding the sale of dollar currency.
Inasmuch as it was reported some weeks ago that individuals desiring to purchase here amounts of dollar currency in excess of the established allowance of $50 preparatory to departing for the United States were finding it easy to purchase the maximum amount at more than one exchange shop, this weakness in the local control was discussed with the Central Bank and an informal memorandum was furnished Dr. Grumbach74 on January 19, 1943, a translation of which is enclosed. Subsequently, by Circular No. 323, dated February 24, 1943, the Central Bank has provided that certain data must henceforth be obtained by the exchange houses and reported concerning sales of dollar notes. There are enclosed a copy and a translation of this circular, together with a form enclosed with the circular, which it is hoped will serve to overcome the weakness aforementioned.
Respectfully yours,