810.5151 Williams Mission/15

The Secretary of State to the Ambassador in Argentina (Weddell)

No. 107

Sir: The Department has arranged with the Federal Reserve authorities that John H. Williams, economist of the Federal Reserve Bank of New York and an expert in international exchange matters should pay a visit to Buenos Aires and certain other South American capitals.

The pertinent portions of Mr. Williams’ instruction are as follows:

“In each of these (designated) countries the American diplomatic and commercial missions will be instructed to assist you in obtaining the fullest possible understanding of all aspects of the exchange control situation, and to put you in touch with the local governmental authorities who are concerned in this matter. You in turn are instructed upon your arrival in each of these countries to put yourself at the disposition of the head of the mission for the purpose of assisting him in the consideration of the exchange control situations with which he has been dealing and for the purpose also of working out with him the major lines of policy immediately to be pursued by this Government. You will find that these missions have given very considerable thought to the subject and have kept themselves closely advised.”

Mr. Williams sails on the Steamship Western Prince which is due to arrive in Rio de Janeiro on July 13. He is accompanied by Mr. Donald R. Heath of the Division of Latin American Affairs of the Department.

The mission will remain in Rio de Janeiro for a week or longer and then will sail for Buenos Aires. It is requested that you transmit to the American Embassy in Rio de Janeiro copies of all despatches and telegrams regarding exchange sent to the Department after June 15 so that the members of the mission may be informed of the latest developments before their arrival in Buenos Aires.

Mr. Williams and Mr. Heath are fully informed of the course of developments in Argentina on the basis of the excellent despatches with relation to exchange matters which have been prepared by you, by the Commercial Attaché and by the Consul General. There are a number of questions of fact, however, which they will wish to be advised upon when they arrive in Buenos Aires. It is requested, therefore, that you have prepared a report, to the extent that material may be available, with regard to the following points:

1.
The total amounts of exchange available upon the open market currently and since the inauguration of that market and the approximate proportion of this exchange secured for discharge of obligations due to United States interests.
2.
The amounts of foreign exchange other than dollar exchange (that is, sterling, florins, francs, etc.) applied by the Government to the service of the public dollar obligations.
3.
The present financial position of the Argentine Government. Is there any intimation that the Government contemplates any new credit or refunding operations?

It will be appreciated if you will furnish the Department with copies of the report prepared upon these three points.

You may find it desirable to enlist the cooperation of the banking and business community in securing information on at least some of these points. The Department is informed that useful information with respect to certain exchange matters was collected by the American Chamber of Commerce in Brazil through the use of a questionnaire to the members of the American business community.

The Department trusts that the dispatch of this mission will indicate to the Argentine governmental authorities the importance attached to it here. Please plan to take full advantage of the visit of the mission to try to work out a suggested satisfactory understanding with the Argentine Government for submission to the Department, or recommendations to the Department as to the line of policy this Government should pursue.

Very truly yours,

For the Secretary of State:
Sumner Welles

Assistant Secretary