740.00112A European War, 1939/28148
The Ambassador in Argentina (Armour) to the Under Secretary of State (Welles)
[Received January 22.]
Dear Sumner: The enclosed memorandum68 dealing with the implementation of our suggested financial controls program rounds out our recommendations for an Argentine economic policy. The memorandum suggests that pressure for Argentine observance of the Rio and Washington Resolutions be shifted from the Central Bank to the Argentine Government itself. Hope for the success of such a change in policy rests on our belief that by attacking the financial problem in the same manner as subversive activities, the Argentine Government may be induced to exercise a greater degree of control in the financial field.
As you so well know, the present Argentine Government has no ideals. Appeals and protests based on anything but self interest are therefore largely futile. We feel that the general economic policy we have recommended will, in the course of a few months, especially if reinforced by news of further victories, cause a noticeable improvement in the attitude of the Government. It is for this reason that every step we take must be considered in the light of our general policy [Page 469] objectives, action which wounds the pride of the Argentines being avoided unless the good results of such action clearly outweigh the ill effects.
I am sending you this memorandum as it completes the program contained in the enclosure to my letter of December 24, 1942.69 I would appreciate your calling it to the attention of Dean Acheson70 since I have had occasion to request his personal assistance in connection with the financial matters discussed therein.
I have requested Mr. Ford to start work immediately on the report covering the financing of subversive activities in Argentina.
Sincerely yours,