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DECLASSIFIED
a DENTIAL
E. . 11652, Sec. 3(E) and S(D) or m
Dept. of State letter, Aug. 9, 1973
-3-
By NLT- He le NARS Date 9876
but France has refused. While we cannot prevent a
participeting country from deciding to "strike back"
at Argentina, I hope that we will not have to bear
the responsibility in Argentina for such à decision.
Although I regret that this letter is running to
such length, I must call to your attention, concerning
the enclosed memorandum, the following considerations
in the light of which the memorandum was prepared
and in the light of which it must be read:
THEMAN
1. The diseriminationsas listed are apparent
"NATIONAL RECORDS AND
diseriminations. They were not invariably discussed
: SERVICE"
with ECA, and ECA's reaction or interpretation is not
always definitely known. The officers of RPA have,
however, regarded as discriminatory all the instances
which are cited.
2. The whole ERP is in a very real sense discrim-
inatory against Latin America. While an attemp t is
made to confine this discrimination within the bounds
of necessity and to balance it with programs assisting
Latin America, some discrimination is inherent and un-
avoidable.
3. In connection with the agricultural purchases
mentioned in paragraph 9, Great Britain was able to
purachase wheat in Canada et a price below the U.S.
price.
In some instances of discrimination, the
apparent discrimination was subsequently eliminated
as a result of protest from the Depertment.
5. Apart from the discrimination against Latin
America inherent in ERP, there is the discrimination
in favor of the U.S. explicit or implicit in ECA
legislation. In this respect, the significance of
"effective demand" is important. Although the par-
ticipating nations had great demand for Argentine
products during 1948, this demand was effective only
to the extent that these countries could sell their
exports or obtain credits in Argentina, or to the
extent that ECA was prepared to finance their pur-
chases. Where the demand was for products of which
the U.S. had exportable surpluses, both legislation
and administration tended to render that demand ef-
fective only in the U.S. The effect was that the U.S
disposed of its grain surpluses and Argentina did not.
The
SECRET
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"ocrText": "DECLASSIFIED\na DENTIAL\nE. . 11652, Sec. 3(E) and S(D) or m\nDept. of State letter, Aug. 9, 1973\n-3-\nBy NLT- He le NARS Date 9876\nbut France has refused. While we cannot prevent a\nparticipeting country from deciding to \"strike back\"\nat Argentina, I hope that we will not have to bear\nthe responsibility in Argentina for such à decision.\nAlthough I regret that this letter is running to\nsuch length, I must call to your attention, concerning\nthe enclosed memorandum, the following considerations\nin the light of which the memorandum was prepared\nand in the light of which it must be read:\nTHEMAN\n1. The diseriminationsas listed are apparent\n\"NATIONAL RECORDS AND\ndiseriminations. They were not invariably discussed\n: SERVICE\"\nwith ECA, and ECA's reaction or interpretation is not\nalways definitely known. The officers of RPA have,\nhowever, regarded as discriminatory all the instances\nwhich are cited.\n2. The whole ERP is in a very real sense discrim-\ninatory against Latin America. While an attemp t is\nmade to confine this discrimination within the bounds\nof necessity and to balance it with programs assisting\nLatin America, some discrimination is inherent and un-\navoidable.\n3. In connection with the agricultural purchases\nmentioned in paragraph 9, Great Britain was able to\npurachase wheat in Canada et a price below the U.S.\nprice.\nIn some instances of discrimination, the\napparent discrimination was subsequently eliminated\nas a result of protest from the Depertment.\n5. Apart from the discrimination against Latin\nAmerica inherent in ERP, there is the discrimination\nin favor of the U.S. explicit or implicit in ECA\nlegislation. In this respect, the significance of\n\"effective demand\" is important. Although the par-\nticipating nations had great demand for Argentine\nproducts during 1948, this demand was effective only\nto the extent that these countries could sell their\nexports or obtain credits in Argentina, or to the\nextent that ECA was prepared to finance their pur-\nchases. Where the demand was for products of which\nthe U.S. had exportable surpluses, both legislation\nand administration tended to render that demand ef-\nfective only in the U.S. The effect was that the U.S\ndisposed of its grain surpluses and Argentina did not.\nThe\nSECRET"
}