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

835.61311/12–1247

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

confidential

[Washington,] December 12, 1947.

Admiral Bunkley³⁹ has just returned from a visit to Buenos Aires and reports that, prior to leaving Buenos Aires, he had a talk with President Perón. He states that President Perón particularly requested that he bring the following message to President Truman:

President Perón stated that, approximately two years ago, the Russian Ambassador made an offer to purchase the entire wheat and grain crop of Argentina and assured the Government that Russia, in return, would supply all of the agricultural machinery, as well as other types of machinery, which the Government required. The Russians went so far as to offer not only machinery of Russian manufacture but also machinery and equipment which was being furnished to Russia and the satellite countries by the United States. President Perón said that the Russian offer was rejected and that the Russian Ambassador expressed great surprise that Argentina was not interested in his proposal. President Perón stated that he was opposed to dealing with Russia and wished to work with the United States.

President Perón further stated that Argentina desires to sell its products, including grains, meats, etc. at prices at which we sell them but that, to do so, Argentina wants to be able to obtain machinery and equipment from the United States in the quantities required and at fair market prices. President Perón complained that Argentina has had great difficulty in purchasing required products in the amounts needed and that Argentina has been charged black market prices in many instances. Argentina wants adequate supplies made available but at reasonable prices.

Admiral Bunkley stated that President Perón informed him that Argentina had fourteen million tons of wheat stored away which it will be glad to give up if satisfactory arrangements can be made.

During the conversation I explained to Admiral Bunkley that one of the transactions which had been complained about by Argentine officials was the one involving the purchase of some twenty million gallons of gasoline at something over eleven cents, whereas the market price in New Orleans was in the vicinity of nine cents. (Admiral Bunkley was directly connected with this transaction which was negotiated through his representatives in Buenos Aires.) Admiral Bunkley said that this was not strictly a black market transaction and that the middleman’s profit was negligible. He stated that commission of his company amounted to only $25,000 and that the Argentine agents participating in the transaction only received $50,000. All of the remaining profit went to the producers, which he claimed were the only ones able to supply the gasoline and were, therefore, in a position to demand any price. Admiral Bunkley felt that Argentine officials had only themselves to blame in this instance.

. . . . . . .

Admiral Bunkley spoke very highly of Ambassador Bruce and said that he had succeeded in maintaining excellent relations with both the “Peronistas” and opposition factions.

Howard H. Tewksbury

39. Adm. J. William Bunkley, Retired.