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  4. Document 398

835.24/5–1845: Telegram

The Acting Secretary of State to the Chargé in Argentina ( Reed )

Washington , May 18, 1945—7 p.m.

552. As soon as possible after his arrival it will be desirable for Ambassador Braden to discuss with the Central Bank the question of future allocations from the US and the issuance of Certificates of Necessity against these allocations.

FEA has obtained allocations for the third quarter of a number of commodities for Argentina and will issue estimates of supply for licensing purposes. In the past it has been the practice of the Central Bank not to issue Certificates for commodities where no allocations were announced. For bookkeeping purposes the Bank will probably continue this policy. It thus becomes necessary that we inform them of the allocations and estimates of supply.

The chief reason for not informing the Bank of any new allocations has been to avoid publication in Argentine newspapers which might give political advantage to certain elements in the Government. Since it is operationally impracticable, however, to establish allocations without notifying the Central Bank, it is suggested that the Bank be told that allocations and estimates of supply will be available providing no publicity is given to them and that they remain confidential except to officials of the Bank and that further if publicity is given to the allocations, it is likely they will be cut off in the future.

If the Bank accepts this formula FEA will forward the estimates of supply to the Embassy and the Bank may then begin to issue new Certificates of Necessity against these quotas. FEA will also issue a current export bulletin announcing that all Certificates of Necessity issued prior to January 1, 1945, shall be cancelled as of July 1, 1945.

FEA in the meantime will continue to approve export license applications where properly validated Certificates of Necessity have been issued and approved by the Embassy. In certain other instances in which no Certificates are available the cases will be referred to the Embassy for its recommendations. The general policy will be to continue to rely on the Embassy for recommendations on all exports.

Grew