835.24/7–2546
Memorandum of Conversation, by the Acting Chief of the Division of River Plate Affairs (Mann)
| Participants: | Mr. Stone, Counselor of the Canadian Embassy; |
| A–Br/S–Mr. Spaeth; | |
| RPA–Mr. Mann |
On July 19 Mr. Stone called at his request on Mr. Braden to discuss Argentina’s desire to buy two corvettes and a frigate from Canada. It was decided to look further into the facts and to await the outcome [Page 285] of the Department’s conversation with Mr. Hadow of the British Embassy on the same general subject before coming to a final conclusion. On July 25 Mr. Stone called on Mr. Spaeth and Mr. Mann and said that the Canadian Government intended to remove all arms from the three vessels in question; that they were capable of conversion into coastal freighters and refrigerator ships and, in fact, others were now being operated in commercial traffic; and while the Canadian Government could in no case control the end use in Argentina, it has no reason to believe that these vessels, already obsolete from a naval standpoint, would be put to naval use. Mr. Stone said that his information was that by removing a boiler, room could be made for a hold, and that this would reduce speed to about 10 knots which was average for commercial type vessels.
In view of the above and Mr. Stone’s statements that his Department was under pressure from the Canadian surplus property people, he was informed that no objection was perceived to the sale of these vessels and that the Department appreciated his government’s cooperation in prohibiting the sale of armaments to Argentina.
It was agreed that “gray cases” would have to continue to be considered ad hoc; that we would continue to consult concerning these cases; and that in each case it would be necessary to decide whether all the available information indicated that questionable items would probably be put to a commercial rather than a military use. The conversation did not cover replacement parts and items designed to improve existing military and naval equipment.