810.74/497
Memorandum by the Chief of the Division of the American Republics (Bonsai)88
I did not sign the Department’s 1473, October 1, 9 p.m., addressed to Buenos Aires because I disagree with the third paragraph thereof, to the effect that “the Department feels that the objective of cutting the circuits would be jeopardized by informing the Argentine authorities in advance”. Since there is every probability that no action will be taken by the companies for some days or weeks at least, it may be worthwhile for me to set forth reasons for my opposition.
- 1.
- These companies are operating under Argentine jurisdiction and in accordance with Argentine law. That law does not, I am confident, permit them to either establish or cut off circuits without permission of the Government. Our instruction, therefore, states that we believe that these United States companies should break the law.
- 2.
- I understand that the theory behind our action is that since the Argentine Government has failed to comply with the Rio Resolutions regarding the telecommunications, the companies are justified in going ahead. I understand that we further believe that if the Argentine Government is confronted with a fait accompli it will find [Page 155] it difficult to order the circuits restored. In my judgment nothing could be further from the probabilities of the case. In fact, the Argentine Government together with a great many Argentines, many of them good friends of ours will be highly indignant that a foreign company operating in Argentina should presume to dictate to the Argentine Government what it should do in carrying out its international commitment. The nationalization of utilities, perhaps a desirable end in itself, will have been given a highly undesirable boost.
- 3.
- The correct procedure in my opinion is for the company to notify the Argentine Government that as of a set date they will no longer be able to give service to the Axis countries. They can allege a variety of reasons including lack of material, faulty transmission, failure of their German connections to observe proper operating practices, et cetera, et cetera. The Government will then be placed in a rather uncomfortable position with relation to the carrying out of a commitment which it entered into at Rio.
These circuits will not be cut off unless the Argentine Government wants them cut off, or at least is willing to acquiesce in their being cut off. The only possible alternative is some form of direct action which would render the circuits unusable (interference, or jamming). I assume that IN has explored this possibility from the technical angle.
- Addressed to the Adviser on Political Relations (Duggan) and the Assistant Secretary of State (Long).↩