840.51 Frozen Credits/9564: Telegram
The Chargé in Argentina (Reed) to the Secretary of State
[Received February 27—7:43 p.m.]
465. Department’s airgram A–658, February 15.75 Source considered responsible and well informed has told British Embassy Vatican has acquired 42 percent stock of Pessoa Francese Italiano chiefly by purchase of shares held by Banco Commerciale of Milan. Another source has placed amount at about 60 percent. Divergent proportions may be due to actual as contrasted with reported capitalization now being investigated. Prominent business man who has come from Chile reports Banco Francese Italiano in Santiago is informing public Vatican has acquired its control and American Embassy there no longer objects relations with it.
Simon of British Embassy unable to understand why Banco Commerciale would surrender its important influence over commerce here exerted through Banco Francese by sale to Vatican and he thinks if above report true there may be repurchase arrangement which would be tantamount to cloaking.
Repeated to Santiago.
- Not printed.↩