835.5151/217
The Ambassador in Argentina (Weddell) to the Acting Secretary of State
[Received November 28.]
Sir: I have the honor to report that the Minister of Finance on November 10 issued a decree providing a plan with the object of avoiding as far as possible in the future the existence of frozen funds arising out of insufficiency of exchange for remittance to foreign countries. Under these regulations importers may obtain exchange permits in advance when making their orders. Those, however, who do not comply with the new regulations will have to accept the amount available after supplying the wants of the former.
There is transmitted herewith enclosed translation of the decree above referred to.30 The official text of the decree appeared in the Boletin Oficial of November 14, No. 11834, page 461, to which the Department is referred.
The decree states in the preamble that under the present conditions importers order their merchandise without knowing whether they will be able to obtain exchange necessary for payment, which, when [Page 753] the necessary permits are delayed, is naturally prejudicial to their interests. It is therefore necessary to avoid such difficulties, giving them the assurance of being able to obtain exchange before placing their orders, granting permits according to the amount of probable available exchange. According to the decree, no restriction on imports will be caused by the new regulations, for importers will still be free to import whatever goods they please in any quantity.
Article 1 authorizes the Exchange Control Committee to grant permits to importers who request them prior to placing their orders. Importers will be requested to present preliminary permits at the Customs House when withdrawing merchandise together with the corresponding commercial invoice issued by the Argentine consulates abroad. Customs authorities will note the introduction of merchandise on permits and will issue a certificate to the same effect, presentation of which will be essential to the granting of the necessary exchange.
The Customs House will permit the introduction of merchandise for which no exchange permit can be obtained, but importers will be required to fill in a special form giving the name and address of the country of origin, quantity and certified value of the merchandise.
As regards merchandise already in transit to Argentina on November 10 and that shipped up to December 31 next, the Exchange Control Committee may issue preliminary permits in so far as deemed convenient, at the request of the interested parties.
For the payment of imports referred to in the preceding paragraph, as well as for those shipped after December 31, 1933, for which no preliminary exchange permit has been obtained, importers will present applications to the Committee as heretofore. These will be gradually granted in the proportion allowed by the exchange remaining after providing for preliminary exchange permits and those granted for other remittances, and after reserving the exchange necessary for permits still pending.
Importers will be required to present to the Exchange Control Committee before November 30 full data relative to imports effected on special terms. No permit will be granted to importers who have not fulfilled this obligation. All claims, petitions, etc., relating to exchange matters must be made in writing. Consular officials will be held responsible under civil and criminal law for any false certification which they may issue.
In weighing the possible advantages to be derived by American importers from the new exchange regulations, as compared with those in force hitherto, I beg leave to state that whereas these new regulations, if fairly administered, should constitute an improvement on the former ones, I am strongly of the opinion that they lend themselves [Page 754] to greater facilities for possible discrimination against American importers and that it would be more difficult to establish such discrimination. Whenever desired, it would be a simple matter to raise objections to the importation of merchandise from the United States on the pretext that such merchandise was not economically essential to the country’s needs, with the subsequent refusal of the import exchange permit.
Respectfully yours,
- Not printed.↩