840.51 Frozen Credits/9902

The Ambassador in Argentina (Armour) to the Secretary of State

No. 9350

Sir: I have the honor to refer to the Embassy’s despatch No. 9059 of February 26, 1943, on dollar currency control in Argentina.

There was enclosed in the above despatch a copy of a memorandum77 sent by an officer of the Embassy to Dr. Grumbach of the Central Bank, to the effect that it appeared that exchange houses in [Page 474] Argentina were not reporting to the Central Bank the amounts of dollar currency bought from and sold to such houses, and that because of the failure to make such reports it was possible for persons to buy or sell more than the allowed $50.00 by visiting more than one exchange house. In answer to this memorandum, Dr. Grumbach delivered a memorandum of the Central Bank dated February 26, 1943, to the Embassy, explaining in detail additional safeguards taken by the Bank to ensure full compliance with the Argentine regulations. There are enclosed a copy and translation of this memorandum.80

Respectfully yours,

For the Ambassador:
Edward L. Reed

Counselor of Embassy
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