835.10/5–250: Telegram
The Secretary of State to the Embassy in Argentina
250. New York Times May 2 states Arg will receive credit offer of 125 million dols. This not official although eventual credit might [Page 715] approximate this figure. Bank informally suggested Cereijo May 2 credit operation 123 million involving 80 million dols Bank credit for partial liquidation commercial arrears and financing small exports agri implements, and 43 million dol Central Bank note issue rediscountable ExImBank to apply on further liquidation commercial arrears. FYI Cereijo reacted vehemently, objecting to small amount, which does not cover full commercial arrears, to Central Bank note issue provisions, to proposed discrimination between governmental and nongovernmental commercial arrears (former shown separately and not included in figure 108 million commercial arrears), and to failure provide for continuing three-year program. Cereijo stated proposal unacceptable because offered no solution Arg problem. Outlook uncertain but Dept exploring further possible solution energetically with Bank and Argentines.1
- An undated memorandum prepared in the Department of State stated in part, in apparent reference to Minister Cereijo’s talk with Export-Import Bank officials on May 2: “At the conclusion of their visit on Tuesday, Mr. Cereijo and his associates presented a memorandum suggesting total commitments for credits to Argentina by the Export-Import Bank in the amount of some $450,000,000. This is entirely unacceptable and I doubt that it was seriously proposed.” (835.10/5–550)↩