835.00/1572: Telegram

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

1450. For the Under Secretary. The report has come from various sources that the Government is planning some important step in its foreign policy to take place in the very near future. American press correspondents who saw Storni last Saturday say that he advised them to keep their eyes open for an event that would occur this week.

In the light of the above a conversation which a member of the Embassy staff had last evening with the Minister of Finance, Jorge Santamarina, is particularly interesting. Santamarina stated:

“The other day when I talked to you I was optimistic. Today I feel 100 percent better than I did then. There will shortly be a break of relations.” Santamarina said he was not authorized to make such a statement and that it should be regarded as strictly confidential.

In the same conversation Santamarina went on to say that there are large numbers of pro-Axis and strong nationalistic elements in this [Page 425] country which oppose any change in Argentina’s foreign policy and that the Government will have to be in a position to show the people that the break of relations with Axis will benefit Argentina from a practical as well as an ideological standpoint. He indicated that any negotiations would be highly undesirable which might be interpreted in the light of either promises of material or pressure on the part of the United States for the purpose of securing Argentina’s break with Axis. His recommendation is that we make a special effort to show our goodwill toward the new Government and our appreciation of each step which it takes to cooperate with us, such appreciation of course to take the form of our treating this country in the same manner as that adopted towards others which have cooperated with us.

I saw Santamarina myself this morning at a service at the cathedral and he told me he was feeling very encouraged.

Armour