840.51 Frozen Credits 35/116b: Telegram
The Acting Secretary of State to the Ambassador in Argentina (Armour)
1661. The Treasury reports that Bancos de la Provincia and de la Nación withdrew on Monday, Tuesday and Wednesday almost $1,000,000 in assets held in New York, and today have directed their New York correspondents to transfer $2,000,000 (Nación) and $7,500,000 (Provincia) to the Federal Reserve Bank of New York to be converted into gold earmarked for the account of the Banco Central. The result of this action would be to cover up any funds of those institutions by merging them with the general assets of the Banco Central and to make impossible the tracing of their particular financial transactions.
The Treasury Department, with the approval of the State Department, is today designating the Banco de la Provincia and the Banco de la Nación as special blocked nationals. Until further notice transactions involving the assets of such banks may be effected only pursuant to Treasury license. Details of the controls of special blocked nationals were furnished you in airgram A–516 of December 31, 1942.