868.24/128

Memorandum of Conversation, by the Liaison Officer (Wilson)

The Argentine Ambassador91 called this afternoon. I said that the Department had been informed that the Argentine Government possessed a large stock of shells of 75, 105, and 155-mm. caliber which had been manufactured in that country. It was also understood that the Greek Government needed shells of these calibers and would like to obtain, if possible, some of the Argentine stock.

Señor Espil said that he knew nothing about these shells or about the desire of the Greek Government to obtain them. He expressed the opinion, however, that the matter was an extremely delicate one as his Government did not wish to do anything which might compromise or throw suspicion on its neutrality. Consequently, the Argentine authorities might be unwilling to sell the Greek Government any of these projectiles. He then suggested that the United States Government might be able to purchase these munitions in the interests of “hemisphere defense”.

In this connection, he told me that some time ago the Argentine Government had purchased in Germany machinery to construct a powder plant. Eighty-five percent of these materials have already been delivered, but the other fifteen percent are still in Europe as the British Government does not wish to let these supplies pass through the blockade. Negotiations, thus far fruitless, have taken place between the British and the Argentines. Señor Espil suggested, therefore, that if the United States Government could induce the British to release the remaining material needed for the construction of the powder factory, the Argentine authorities might be willing to approve the sale of the shells. What would happen to these munitions after the United States obtained title to them would not, of course, enter into the picture.

I told him that I would refer his suggestion to the appropriate officials of this Department and explained to him the Department’s interest in the transaction in view of this Government’s policy of rendering assistance to Great Britain and Greece.

  1. Felipe A. Espil.