840.51 Frozen Credits 35/403c: Telegram
The Secretary of State to the Ambassador in Argentina (Armour)
741. The Secretary of the Treasury2 has again urged, and I am seriously considering, the desirability of subjecting Argentina to a general Treasury freeze similar to the one proposed last January.3
I am considering such a freeze as part of a program similar to that suggested in the latter part of your 970, April 13, which might include the following steps:
- (1)
- Immediate announcement by the Treasury of a general Treasury freeze as was proposed last January and utilizing the same general statements, terms and conditions including private authorizations to banks and other financial institutions which would permit financial transactions incident to ordinary commercial transactions.
- (2)
- Carrying forward one by one over a period of a few months of
some or all of the following steps:
- (a)
- A tightening up on general exports to Argentina as suggested in your 970.
- (b)
- Diverting an occasional meat ship from the River Plate to the United States so that Argentina’s position as a source of Britain’s meat supply would be reduced.
- (c)
- Reduce or eliminate the granting of licenses for Argentina to acquire petroleum products at Caribbean supply points.
- (d)
- Reduce the availability of coal to Argentina.
The Treasury freeze would of course have to be publicly announced. The other items would be done quietly and without any public announcement and spread over a period of considerable time rather than announced as a program of economic pressure. Their effect would, of course, become known to Argentina as each step was taken.
[Page 270]I should appreciate your comments by urgent telegram on the desirability and workability of such a program, its effects in Argentina, and your views on any possible repercussions in other American republics.