810.74/888: Telegram

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

140. Department’s 14, January 4, 8 p.m. Following is translation of memorandum instruction dated January 19 from Argentine Foreign Office.

“The Ministry for Foreign Affairs has the honor to acknowledge receipt of the memorandum dated the 14th instant from the Embassy of the United States of America, which advises that the American interests in the Transradio Company will receive instructions from the United States Government in order that, in agreement with the British interests, the said company may put an end to the transmission of all messages in secret language sent to or received from non-American countries.

The said memorandum once again raises the problem of foreign interests in corporations which function in the country, a point concerning which the Argentine Government has reiterated and reiterates its viewpoint, so well known that it would appear unnecessary to emphasize it again, to wit, that companies which function in Argentine territory, in conformity with the provisions of its laws are Argentine companies subject exclusively to the laws and to the authorities of the country. Consequently companies which function in the Republic may not accept orders emanating from foreign governments.

In the case of the Transradio Company this fact is much more evident, because a company operating a public service is concerned and as such it is subject exclusively to the provisions of its respective concession and to the control of the Posts and Telegraphs authorities.

The decrees of October 8 and December 2, 1942, relative to the intervention of Telecommunication companies and the regulation of the Posts and Telegraphs Department, have been dictated for the purpose of increasing still further the supervision of telegraphic communications with foreign countries providing the greatest safeguards and establishing a maximum quota for transmissions in code, with the additional proviso that said quotas could be reduced or suppressed by the competent authority (article 2 paragraph 3 of the regulations of December 3) in case it is proved that the use of these facilities is abused.

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The memorandum under reply adduces no proof whatever which substantiates the aforementioned abuse which might warrant the suppression of telegraphic service in secret language, within the existing regulations.”

It is understood that official interventors provided for in December 2 decree will be named tomorrow for each company.

Armour