Foreign Relations of the United States, 1950, The United Nations; The Western Hemisphere, Volume II

835.10/5–350

Memorandum of Conversation, by Mr. Jack C. Corbett of the Office of Financial and Development Policy

secret

[Washington,] May 3, 1950.

Subject: Credit to Argentina.

Participants:	Mr. Brignoli, Argentine Delegation
	Ambassador Griffis
	ARA—Mr. Ivan White
	EC—Mr. Howard Tewksbury
	EC—Mr. Clarence Birgfeld
	OFD—Mr. Jack C. Corbett

1. A meeting was held with Mr. Brignoli in Mr. Tewksbury’s office to acquaint the former with the elements of the Eximbank proposal of Friday, April 28. This proposal embodied the $65 million (the first Eximbank proposal) plus $15 million for agricultural equipment and $43 million for the purchase by the Bank of notes issued by Argentina in connection with the arrearages. If holders of the notes did not avail themselves of these facilities within six months, any amounts remaining could be used by the Argentines for further agricultural equipment imports.

2. Mr. Brignoli expressed no views as to the adequacy of the proposed credit but limited himself to asking questions concerning technical details of the proposal.

3. Ambassador Griffis pointed out to Mr. Brignoli that this was merely a briefing session, that the proposal would be presented to the Argentines formally by the Eximbank the same afternoon or the following day. Ambassador Griffis stated that he was making no recommendations to the Argentines on the matter but felt it was a matter of negotiation between them and the Bank. However, if the Argentines were successful in getting the Bank to expand the credit or to alter its purposes, the Department would not object.¹

1. In telegram 263 to Buenos Aires, May 5, 1950, the Department reported in part: “Subj to approval by NAC, ExImBank and Cereijo have today agreed to credit of $125 million for payment past due commercial dol obligations. Total outstanding commercial arrears both of private and governmental character to be liquidated by this credit with such additional Arg funds as may be necessary. Advances by ExImBank will be evidenced by promissory notes of consortium of private Arg banks bearing unconditional guarantee Central Bank. Notes to bear three and one-half percent interest and amortization payments on semi-annual basis over ten year period commencing June 1954. Arg Govt further to agree within its financial limitations to seek mutually satis settlement arrears financial acct.” (835.10/5–550)