Foreign Relations of the United States, 1947, The American Republics, Volume VIII

711.35/1–2147

Memorandum of Conversation, by the Chief of the Division of River, Plate Affairs (Mann)

restricted

[ Washington ,] January 21, 1947.

Participants:	Ambassador Messersmith
	Mr. Braden—A–Br 11
	Mr. Wright—A–Br 12
	Mr. Briggs—ARA 13
	Mr. Mann—RPA 14

Ambassador Messersmith called on Mr. Braden at the Ambassador’s request and the following matters were discussed:

1. Ambassador Messersmith inquired whether Argentine performance in the field of schools and institutions was considered by the Department to be adequate. Mr. Braden stated that on the basis of the Embassy’s reports there appears to have been substantial performance in this field with the possible exception that there were some propagators of Nazi ideology who ought to be repatriated. Ambassador Messersmith said that there were none. Mr. Braden stated that the matter of schools and institutions was raised in June 1946 principally for the purpose of ascertaining precisely what had been done by the Argentine Government in this field; and that it had been clear for several months that the principal compliance questions related to the persons and property fields.

2. The Ambassador inquired whether the Department would consider Argentine performance adequate in the field of property if that Government should proceed with its plans to acquire title to enemy interests in a total of about 75 spearhead firms. Mr. Braden replied that it would be necessary to study whatever decrees might be issued by the Argentine Government and to determine whether full and complete title of the enemy owners was in the Argentine Government—whether the proposed Argentine decree would have substantially the same effect as our own vesting laws; and to determine also whether there were any firms in addition to the 75 which ought to be dealt with. Mr. Wright added that the Department did not expect the Argentines to do any more than our own Alien Property Custodian had done in the United States. The Ambassador referred to the Staudt case¹⁵ and said that while the plan was to eliminate the interests owned from Germany, there was no evidence of any activities on the part of Staudt himself subsequent to our entrance in the War. The Ambassador expressed the opinion that no further action should be expected in the Staudt case. There was also some discussion about an instruction which had been prepared in the Division of Economic Security Controls concerning Staudt which none of those present except Ambassador Messersmith had yet seen. The Ambassador expressed the opinion that this instruction was inconclusive since it suggested the submission of certain data to the Argentine Government which that Government already had and did not decide the question of whether Staudt himself should be regarded by this Government as undesirable.

3. With regard to persons, the Ambassador inquired whether we would regard the punishment or repatriation of persons such as Becker and Harnisch¹⁶ as essential to compliance, in view of the efforts which were being made by the Argentine Government to locate these and others in the original group of 52 which had gone into hiding. The Ambassador stated that these agents presumably were warned that a Government roundup was eminent [imminent], in spite of elaborate secrecy precautions, because of the venality of some minor police official. Ambassador Messersmith also referred to the reports that some of the agents in hiding had been caught. Mr. Braden said that it was not possible to pass final judgment on this question until we knew definitely what the Argentine Government had finally accomplished in this field. He said that the Department did not wish to lay down a blueprint of what the minimum requirements were.

4. The Ambassador referred to Mandl’s case and said he thought a visa should be granted. It was explained that, at Mr. Acheson’s¹⁷ suggestion, this case had been sent to the Visa Division for action and, more recently a memorandum had been sent to the Secretary on the subject but that no reply had been received. The Ambassador said that a strong recommendation on the part of the geographic office in favor of the issuance of a visa would probably resolve the matter and he thought this recommendation should be made.

5. The Ambassador referred to the case of the four frigates¹⁸ and said that the failure to allow their export to Argentina had very unfavorable repercussions in Buenos Aires; that he thought the frigates should be allowed to go to Buenos Aires in view of the fact that the Argentine Government intended to put them to a legitimate use. It was explained that the vessels had been classified as vessels of war by the Arms Committee which brought the vessels within the policy of prohibiting the export of arms, war vessels and implements of war to the Argentine prior to settlement of the compliance question. It was also explained that the Secretary’s memorandum asked for the facts and that a summary of the case had been sent to him but that no reply had been received.

At several places in the conversation the Ambassador referred to conversations that he had had with the Secretary on the points referred to above and he expressed the opinion that unless the Argentine situation was resolved very soon—particularly with reference to the matters listed above—Argentine-United States relations would deteriorate.

Thomas C. Mann

11. Spruille Braden, Assistant Secretary of State for American Republic Affairs.
12. James H. Wright, Special Assistant to Assistant Secretary of State Braden.
13. Ellis O. Briggs, Director of the Office of American Republic Affairs.
14. Thomas C. Mann, Chief of the Division of River Plate Affairs.
15. Staudt and Company, headed by Ricardo W. Staudt, dealt in wool and other commodities, through numerous branches and subsidiaries. The Company was on the Proclaimed List.
16. For data on these and other individuals implicated in the German espionage system, see Department of State, Consultation Among the American Republics With Respect to the Argentine Situation (Washington, 1946), pp. 13 ff.
17. Dean Acheson, Under Secretary of State.
18. See memorandum by the Assistant Secretary for American Republic Affairs (Braden), January 8, p. 215.