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Volume #13 - 932.

CHAPTER XVI

RELATIONS WITH LATIN AMERICA

PART 1

ARGENTINA

932.

DEA/50000-D-40

Secretary of State for External Affairs
to Ambassador in United States

TELEGRAM EX-877

SECRET

Ottawa, April 3, 1947

Following for Wrong from Pearson, Begins: Your telegram WA-922. Export of Arms† As you know, War Assets Corporation have between 100 and 150 new Mosquito aircraft for sale and which Argentina is very anxious to purchase.1 The Argentine will pay heavily for these aircraft, the sale of which would amount to probably more than $3,000,000. Cabinet Committee discussed this matter this morning and have instructed me to ask you to discuss it with the United States authorities, in accordance with the understanding that there should he consultation on both sides before sending material of this kind to Argentina. The following considerations are important:

(1) There is a very acute shortage of fats and oils in this country2 and this transaction might be used to secure oils from the Argentine.

(2) Shortage of American dollars is growing. It is now necessary to take every possible step to strengthen the Canadian exchange position. The American authorities will be aware of our great anxiety over this.

(3) The United Kingdom have decided to treat Argentina now in the same way as other South American states and have abrogated the gentleman's agreement between the United States, United Kingdom and Canada regarding export of arms to that country.

(4) Our doubts about United States policy in regard to Argentina and our fears lest this policy may be changed suddenly to the commercial disadvantage of Canada or, even without any formal change, United States surplus war materials may be sold without our knowledge. You will agree that our fears of this kind have substance.

(5) Will you take this matter up with the United States authorities at once and indicate that we are disposed, because of the factors indicated above, to sell these Mosquito aircraft in the manner indicated. Ends.


1Voir les documents 930-931/See Documents 930-I.

2Voir les documents 743, 797, 799./Sec Documents 743, 797, 799.



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