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STORET MEMORANDUM ON THE ARGENTINE SITUATION Summary of Conclusions There is both a long-term and an immediate Argentine problem. The essence of the long-term problem is that Argen- tine Governments have long aspired to create and control an anti-United States bloc of Latin American states and to become the dominant power in South America. Peron's aim, already partially accomplished, of forming a totali- tarian-type state, with almost absolute power in his hands, increases the danger which this traditional Argentine policy represents to the inter-American system. There is no quick, easy way to change this attitude which is the root cause of Argentina's obstructionist and THUMAN . role in every phase of inter-American politics and of "NATIONAL ARCHIVES AMD RECORDS . top SERVICE' Argentina's so called "neutrality* in both World Wars. But by continuing to stand for the principle that agree- ments must be honored by performance; by continuing to identify ourselves with economic progress, democracy and liberty rather than with opportunism and totalitarianism; and by continuing, within the framework of the good neighbor policy and on a practicable, basis, a constructive program