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

740.00112A European War, 1939/11929: Telegram

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

Washington, June 8, 1942—11 p.m.

827. Reference your 982, May 26 regarding Banco de la Provincia. The Department feels that the desire of the bank to be included in the Export-Import Bank’s approved list should be used to obtain from the bank a written statement approved by the board of directors that: (1) The bank will grant no new credits or overdrafts to Proclaimed List persons, (2) the bank will proceed immediately and definitely to eliminate existing credits and overdrafts of this nature (in this connection the bank should give its oral agreement to furnish to the Embassy full information concerning the existence of all such credits and overdrafts), (3) the bank will inform the Embassy before making any remittance to any Axis occupied or controlled country or to any European neutral country if any person in any Axis occupied or controlled country has an interest, giving the Embassy the full details of the contemplated transaction, (4) the bank will cooperate with the Embassy in cases of intended transfers to foreign countries where there might be any doubt as to possible benefit to enemies of the allied nations.

The Department appreciates the cooperative attitude displayed by Tintoré⁸² and d’Olivera⁸³ but feels that in practice government pressure through Sánchez Sordono [Sorondo]⁸⁴ would nullify their good intentions.

Please forward your opinion concerning the desirability of obtaining an agreement along these lines as a condition of the inclusion of the Banco de la Provincia in the Export-Import Bank’s approved list. It should be understood that in the event the Banco de la Provincia does not strictly comply with the above assurances the facilities of the Export-Import Bank will be withdrawn.

Your opinion is also requested as to the advisability of obtaining similar assurances from all banks to be included in the Export-Import Bank’s approved list. It is thought that formal rather than informal assurances might strengthen the Embassy’s position with regard to banks which in the past may have been engaged in questionable activities.

Hull

82. Alberto Tintoré, head of the Foreign Department of the Banco de la Provincia.
83. General Manager of the Banco de la Provincia.
84. President of the Banco de la Provincia.