162. Telegram From the Embassy in Argentina to the Department of State 1
846. President Frondizi called me to Quinta Olivos noon today.
President said he attached great importance to forthcoming visit US and remarked he sincerely hoped it would bring about material strengthening of relations which he felt had been neglected for many years. Remarked particularly it seemed incredible that no Argentine President had previously visited US. He obviously convinced importance political alignment as well as strengthening economic relations with US. I told him our government was doing everything in its power to insure maximum value his visit for US-Argentine relations.
He asked whether I knew reason his refusal preinaugural invitation. I said probably one was heavy task involved in formation of Government. He said principal reason was his feeling that visit at that time would have made it impossible to do more than state courses of action contemplated and programs he hoped establish. Now he feels his moves in petroleum and power fields are concrete proof of policies adopted and in effect. Feels this will have more telling effect than mere statement plans and programs would have had then.
Said he believes strong probability now exists Argentina will be close to self-sufficiency in petroleum within three years. I said I believed Government and people in US conversant with Argentina affairs applauded his courage and his success so far in meeting two Argentina’s principal economic problems.
He asked what other problems we in US viewed as important to Argentine recovery. I mentioned transportation as third area with which he thoroughly agreed but added that not only would rehabilitation of railways be expensive but problem also involves reduction excessive staff which plagues other government enterprises. I said that while railroads were of course important I was thinking of whole transport system including roads, waterways and air. He, particularly interested in air traffic, said Argentine airlines not able handle traffic and foreign lines needed. I reminded him of resolution 18 problem and discussions over possible bilateral pact.
[Page 524]He told me he had devoted considerable attention to Communist activities and is now determined to take firm action against them. He said he and his advisors had considered possibility introduction legislation to curb subversive activities aimed at Communists and extremist Peronistas but believed passage would be difficult at present time and would certainly provoke extensive and perhaps bitter debate. He cited tumultuous session yesterday. He said he is now determined use state of siege law as legal base for anti-Communist action. That he said explains his insistence on obtaining legislative extension of state of siege. This was designed not to deal with immediate situation of labor unrest which he feels now reasonably quiet following firm government action but was necessary preliminary to both anti-Communist program and austerity program both of which he will launch in next few days. He said he expects complaints over belt tightening, believes that Communists and extreme Peronists will endeavor aggravate problem but appears confident he can deal with such contingency.
I said US would in my opinion welcome firm action by his Government to reduce or eliminate Communist influence since we felt it was in interests of Argentina and whole free world. I said that evidence of such determination if visible before his visit US would be another concrete asset which would be favorably viewed in US. He did not mention specification he intends take against Communists.
He said he was encouraged by reports from Washington over efforts of Del Carril in financial field, added that this would involve some changes re particular obligations but was optimistic over success mission of Aleman now en route Europe.2