201. Paper Prepared in the Department of State1

SUBJECT

  • The President’s Meeting with the Argentine Vice President

Dr. Carlos Humberto Perette, Vice President of the Republic of Argentina, has accepted an invitation from Mayor Robert King High of Miami, Florida, to visit Miami from November 17 to 23 to participate in “Argentine Week”, sponsored by the City of Miami. Perette will be seated on the platform at a dinner given in President Kennedy’s honor in Miami at 7:00 p.m. Monday, November 18. Perette has been informed that the President will see him for a brief, informal conversation in a manner convenient to the President. We believe it important to our relations with the new Argentine Government that the President meet with Perette, as Ambassador McClintock has recommended.

Perette’s political career has been notable for the opportunism and extreme nationalism he has displayed. Although the Vice President in Argentina does not usually play a major policy-making role, Perette is a controversial politician who has been the leader of the ultranationalist elements who are pressing Argentine President to take immediate action to annul the oil contracts.

Dr. Perette speaks English.

The following are enclosed for use by the President in connection with Perette’s visit to Miami. The Secretary has not had an opportunity to review this memorandum.

Ben H. Read2

Attachment

SUBJECT

  • Talking Points to Use With Carlos H. Perette, Vice President of Argentina
1.
The United States was gratified that the Argentine elections last July were conducted in accordance with the highest traditions of representative [Page 418] democracy and we wish the new Government of Argentina well.
2.
We believe the revival of public confidence following the elections and the installation of the new Argentine Government provide an opportunity for the country to work its way rapidly to improve its economic situation and resume a position of leadership in the hemisphere. We respect and admire the declaration in President Illia’s inaugural address that the Argentine Government is determined to make better use of its own resources. We were also pleased that at the same time he expressed such strong support for the Alliance for Progress. We believe it is clear that it is not President Illia’s intention to take the ultranationalistic view that Argentina should “go it alone”. While this view might appeal to some political groups in Argentina, it would have unfortunate long-term effects on both Argentina and all her friends in the hemisphere, as the history of the Perón era demonstrated.
3.
We believe the record of United States relations with Argentina, particularly during the difficult year and a half preceding the inauguration of the Illia-Perette Government indicates our real desire to be helpful. Dr. Perette may not be aware that the United States Government provided more than $290 million in loans or refinancing arrangements to Argentina during this period. We also encouraged private United States as well as foreign governmental and international lending institutions to help Argentina during this difficult period. These actions on our part undoubtedly helped the interim Argentine Government prevent the country’s economic recession from spreading into a deep depression. This stabilization of economic conditions also had important political results as well, since it made it possible for elections to be held in a reasonable atmosphere.
4.

It is our hope that Argentina, as a leading power in the hemisphere and as a country which has maintained an exemplary reputation for its actions relating to international business, will continue to set a good example for other countries which are less well endowed.

The appropriation bill for our contribution to the Alliance for Progress is now before the United States Congress. The Congress and the people of the United States are deeply concerned over the fact that, while the United States Government has been fulfilling its financial commitments ($1 billion a year) made at Punta del Este, private funds considered necessary to support an adequate level of growth in Latin America have not been forthcoming. The fact of the matter is that actions motivated primarily by domestic political considerations in a number of Latin American countries have seriously diminished the flow of private foreign investment to Latin America and have caused domestic Latin American investors to send large sums abroad.

[Page 419]

In these circumstances, we would regard it as a great misfortune if Argentine Government’s action on the oil contracts would take a form which the United States people and Congress would regard as expropriatory.3

5.

The United States Government would like to continue to be helpful to Argentina. We know that other friendly Governments take a similar view, and we understand that private United States firms would increase their investments in Argentina if they were assured of political stability and reasonable treatment.

We have never questioned the right of Argentina to manage its own natural resources. However, if this is done in an unwise way and American firms do not receive just treatment, the United States Government can not call on its taxpayers to get the Argentine Government out of economic difficulties.

6.
We have no indication that Perette will wish to discuss civil aviation matters. However because of his special interest in this subject and as a result of a request by Mr. Feldman a background paper on United States-Argentine civil air relations is enclosed.4
  1. Source: Department of State, Central Files, POL 7 ARG. Confidential. Drafted by Lancaster and approved by Margolies and Cottrell.
  2. Printed from a copy that indicates Read signed the original.
  3. Following the assassination of President Kennedy on November 22 in Dallas, Texas, Perette and Foreign Minister Zavala Ortiz met with Rusk, Harriman, and Martin on November 27, from 9:30-10:15 a.m. Rusk stated that he hoped the oil contracts issue would be handled in a way to preserve opportunity for private investment in Argentina. Perette stated that the oil issue was in the courts, but he recognized Rusk’s point. The oil companies would be compensated and “foreign investment had nothing to fear from Argentina.” (Telegram 526 to Buenos Aires, November 28; Department of State, Central Files, POL 7 ARG) The memorandum of conversation of this meeting is ibid.
  4. This undated paper is attached, but not printed.