740.35112 RP/1–1547: Telegram

The Secretary of State to the Embassy in Argentina

confidential

35. Text proposed note verbale, urtel 42, Jan 15,8 has been revised with concurrence Amb. Messersmith in following form which you are authorized transmit FonOff:9

“The Embassy of the United States of America in Buenos Aires presents its compliments to the Minister of Foreign Relations and, as orally requested, has the honor to suggest that the Argentine Government may wish to consider, as a means of finally eliminating enemy interests in spearhead enterprises, the feasibility of effecting the final and complete acquisition en bloc by the Argentine Government of all enemy rights, titles and interests in such concerns; this acquisition could be accompanied by the provisional payment of a specified sum, to be deposited in an appropriate agency of the Argentine Government.

“If such procedure is feasible, it should be the equivalent of vesting and it would be possible to eliminate all enemy interest in the properties in question, leaving for later determination by the Arg Govt the most appropriate means of making final inventories and appraisements, and final disposition.”

Dept understands that note verbale was requested by FonOff and will not be permitted by FonOff to be misinterpreted as “intervention” in Arg internal affairs. It is noted that the note verbale is limited to the property question.

Principal changes in draft copied in urtel 42 are:

1.
Elimination of suggestion that FonOff would be able to make public announcement which would undoubtedly be received favorably by press and public opinion since it was thought that this might be inappropriate in a note of ours.
2.
Changing your language regarding purchase en bloc of enemy property to acquisition en bloc of enemy interests in spearhead enterprises. This is more restrictive.
3.
The reference to subsequent disposition by Argentine Govt is [Page 166] intended to avoid possible implication that we are requesting permanent Govt ownership and operation.
4.
The words “if feasible” and similar expressions are intended to avoid interpretation that we presume to pass on legal and other questions within province of Argentine Govt.

Byrnes
  1. Not printed.
  2. A marginal note reads: “According to report from O’Donoghue at Buenos Aires, action was taken. A minor change was made in note, 2nd paragraph, & this change was cleared with T. C. Mann. 1–22–47.” Sidney E. O’Donoghue was Chargé in Argentina; Thomas C. Mann was Chief of the Division of River Plate Affairs.