811.20 Defense (M) Argentina/9–745: Telegram

The Acting Secretary of State to the Ambassador in Argentina ( Braden )

1231. Paragraph C 3 of Oilseeds-Fuel Oil agreement provides “The Argentine Government hereby undertakes to facilitate by all the means in its power the consummation of the purchases at the prices herein named and particularly the availability of the products”, etc. After consultation with FEA officials, it was revealed Argentine Government officials had agreed with Butler, FEA representative, if necessary, to (1) give highest railroad priorities for these commodities, (2) set ceiling prices at levels to permit movement of seeds to crushers and peanuts for export and further affirmed to take action as indicated in Embs 1620 of July 23.91 Argentina should be asked to take these and any other necessary measures, such as inventory controls, to make available for export quantities not reasonably needed for current domestic consumption and not required for normal export quotas for other American Republics.

Since urtel 2024 of Aug 3091 indicates that present Argentine officials are not implementing agreement as to edible oils and in view of recent changes in personnel handling matter, FEA and Dept suggest that Emb assisted by FEA representative explore and confer anew with appropriate Argentine officials need for Argentine Govt carrying out the responsibility it undertook in signing the Agreement.

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