Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

800.8830/1802a

Memorandum by the Assistant Executive Secretary of the Board of Economic Operations (Corbett)⁵⁴

[Washington,] September 2, 1942.

The following is the course of discussions between representatives of the Argentine Merchant Marine and the War Shipping Administration. A proposal was made by the Argentine Merchant Marine to the War Shipping Administration for the employment of the former’s vessels:

1. Four Argentine ships to be used to Peru and Chile.

2. Four ships, including three ex-German ships, to be used to the west coast of the United States. The Argentines are insistent upon using the three ex-German ships in the west coast, as they state that the Germans will sink them if they use them in the east coast trade.

3. Three refrigerated vessels to be used to Cristobal carrying dairy products and meat.

4. Several ships to be used to Venezuela, Colombia and Mexico on the northbound voyage, carrying cargo from the United States on the southbound voyage.

5. The remainder of the ships to be used directly to New Orleans or Gulf ports.

The War Shipping Administration counter-proposal was as follows:

a. From WSA’s point of view, there is no need to establish any United States Pacific coast service from the Argentine. Consequently, it was suggested that the German vessels referred to in point 2 above be used in place of the ships mentioned in point 1, thereby releasing these ships for east coast service.

b. The Reefer ships to be used to Trinidad, Puerto Rico or Cuba with frozen meat.

c. No ships to be sent to Venezuela, Colombia, or Mexico unless our requirements from the River Plate area have been met.

d. All ships to go to New Orleans.

e. Navy has restricted all neutral shipping in the Gulf to New Orleans. Because of poor bunker facilities, the Argentines desired the WSA to make available approximately 15,000 or 20,000 tons of Norfolk coal in New Orleans. This WSA said it might be possible to do if the Argentines agreed to all other points.

f. The Argentines were informed that we needed approximately 40,000 tons from the River Plate area.

The Argentine reply to these proposals was as follows:

1. In lieu of supplying the Argentines with coal at New Orleans, as mentioned in point (e), the War Shipping Administration would, on ships controlled by it, send 7,000 tons of coal a month to Argentina for the Navy and one other consumer whose name I do not have.

2. The Argentine vessels would be loaded southbound in accordance with the Central Bank’s program of August 10.

3. The Argentines still desire to use one ship to the west coast of the United States.

4. The Reefer ships would have to be used to Puerto Rico or Cuba, as the Argentines will not send them to Trinidad.

Jack C. Corbett

54. Copy transmitted by the Department to the Chargé in Argentina in instruction No. 3137, September 14, 1942.