194. Letter From the Minister-Counselor of the Embassy in Argentina (Bernbaum) to the Director of the Office of East Coast Affairs (Boonstra)1
Dear Clare: We were very glad to get your very helpful letter of June 19,2 describing the reaction in the Department and in the Export-Import Bank to our telephone call to you last Saturday. The call was made against the background of information [less than 1 line of source text not declassified] to the effect that thinking in the Department, and we assumed in the Export-Import Bank as well as in the Treasury Department, was along the lines of fairly substantial additional assistance to Argentina within the near future. Given the crucial political situation existing at the time and the indications that the United States Government was in any case receptive to the idea of large-scale assistance, it seemed to us most desirable that any advantages which might be derived be capitalized upon immediately. Our thought was that this might best be done with a prompt announcement of the Brand visit from which, however, the negative aspects previously recommended by us would be deleted.
We had no idea of going beyond this in the sense of making any advance commitments. We felt that a mere announcement of Brand’s visit, without any negative statements restricting the scope of the visit, would in itself be utilized locally as a further indication of U.S. interest and readiness to look into the problem. We anticipated that if any questions were asked, Brand’s answer could make it clear that although the specific purpose of the visit was to check into the as yet [Page 585] undisbursed balance of payments credits, the Bank would, naturally, be interested in any worthwhile and sound projects coming up which might contribute to the Argentine program.
This was to have been the first stage. The second stage would take place at the end of Brand’s visit when, depending upon its results, we would be able to look into the possibility of saying something more positive regarding the future.
It seems to us that the attitudes described in your letter are substantially in accordance with those existing here at the Embassy. The same applies to the proposed statement which is to be made at an opportune moment.
The message mentioned by me in our telephone conversation was not set because of your indication that large-scale assistance to Argentina was, in fact, no longer being contemplated and that the information we had received was dated. This plus the rapid political developments culminating in the resignation of the Cabinet made it seem desirable that we await further clarification of the situation before making any announcement.
It seems to us that with the reformation of the Cabinet, in which the dominant role is apparently to be played by Alsogaray, the time has now come for us again to consider a prompt announcement. The Ambassador has under consideration the possibility of discussions in the near future with both the President and with Alsogaray. He is just awaiting an opportune moment. He intends at that time to sound them both out on plans for the stabilization program and to set the stage for an announcement of Vance’s visit.
With best regards and renewed thanks for keeping us so well informed,
Sincerely yours,
- Source: Department of State, ARA/EST Files: Lot 61 D 332, Official Correspondence. Secret; Official-Informal.↩
- Document 189.↩