840.51 Frozen Credits 35/125: Telegram
The Ambassador in Argentina (Armour) to the Secretary of State
Buenos
Aires, November 3, 1943—7
p.m.
[Received 8:55 p.m.]
[Received 8:55 p.m.]
2608. Accurate determination of reaction still difficult since only banking fraternity fully informed regarding extent of Treasury [Page 504] measures. However, the following reactions have been obtained during the day.
- (1)
- Welch of City Bank reports that at luncheon meeting of bankers consensus was that ad hoc blocking of Nación and Provincia would not be effective and only result in strengthening the hand of the Government;
- (2)
- Wilcox of Boston Bank reports a somewhat chilly atmosphere in Central Bank, although officials are marking time and advising Government to go slowly with possible countermeasures. Another source has complicated the position of the bank vis-à-vis the Government and apparently feel unkindly towards the United States;13
- (3)
- Manager of Banco Holandés states that he could understand general blocking but action taken places unblocked institutions in unenviable position. Same reaction reported from Royal Bank of Canada;
- (4)
- Manager of Francés y Rio de La Plata stated that he was at a loss to understand action although he would not have been surprised at general freezing measures;
- (5)
- Former high Government official stated that he felt action would create irritation not only in Government but among groups friendly to us;
- (6)
- Welch and Wilcox state that, in their opinion, if a clear-cut case does not exist against banks, consideration might be given to same [some?] general license permitting controls satisfactory to the Treasury but face-saving to the local institutions. Both agree that a measure of supervision should continue;
- (7)
- Minister of Finance informed Embassy today that Banks would be willing to supply Federal Reserve with full information regarding any operation.
Further reaction will be reported tomorrow.
Armour
- Foregoing sentence apparently garbled.↩