Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-12-05
.S10O,000,000
Credits Planned
For Argentina
Step Taken to Bolster
Hemisphere Defense,
Hull Tells Press
BY BLAIR BOLLES.

The Treasury and the Export
Import Bank disclosed today the
Federal Government is planning ex-
tension of a 100000, 900 credit to
Argentina.
Secretary of State Hull subse-
quently said at his press conference
that the step was contemplated in
the interest of bulwarking the de-
Tense of the Western Hemisphere
against any kind of outside influ-
ences, in accordance with the reso-
lutions adopted at the Havana Con-
ference last July.
Secretary Morgenthau announced
that the Treasury planned to make
available s50,000,000 to Argentina
from the currency sterilization fund,
and Warren Lee Pierson, president
of the Export Import Bank, said:
I'D hate to see the Treasury do
better than U.s." when asked how
much money the bank would lend
Argentina.
These statements came half an
hour before Secretary Morgenthau
and Mr.. Pierson began a conference
with a delegation of Argentinan
financial experts headed by Dr.. Raul
Prebitsch, general manager of the
Central Bank of Argentina.
Similar to Chinese Loan.
Secretary Morgentnau said Ne
Treasury loan will be similar to the
arrangement for advancing $50
900 900 to China from the stabiliza-
ton fund, announced last Satur-
day. However, he said that since
Argentina is a nation at peace. he
would feel under no moral obligation
to consult Congress about the OPP
Grafton.
Mr.. Pierson said when the con-
ference with Mr.. Morgenthau broke
up that he was going to talk with
Mr.. Prebitsch at his Export Import
Bank Offices this afternoon. He
added that in due time Jesse Jones,
the Federal loan administrator and
Secretary of Commerce, would give
out the news about what loan ar
rangements the bank reached with
the Argentinans.
The Morgenthau conference lasted
40 minutes, after which the group,
with the exception of the Secretary
and Mr.. Pierson, moved in body
to the Office of Daniel w Bell, Un-
dersecretary of the Treasury, for
further talks.
Negotiations Not Yet Complete.
Negotiations for neither the sabil-
ization fund arrangement nor the
bank loan have been completed, but
Mr.. Pierson said everything was 60
ing smoothly. Ten persons we're
present at the first conference. They
were:
Secretary Morgenthau, Undersec-
rotary Bell. Mr.. Prebitsch, Mr.. Pier
son, Ambassador Espil of Argentina,
Emelio Collado, assistant chief Of
the Division of American Republics,
State Department; Christian Raven
dial, Second Secretary of the Amer
lean Embassy in Buenos Aires;
Harry D. White and Merle Cochran,
Treasury experts, and Edgardo
Grumbach of the Argentine Central
Bank.
Expected to Ease "Sore Spot"
The Argentine arrangement is ex-
pected to ease one of the sorest spots
In this country's Western Hemis-
phere diplomacy, whose success is
closely integrated with our CONNER
cial and economic relations with the
South American republic.
fror,1 TTn;%zZ
were temporarily suspended in
Argentina by official action two
months ago on the plea that Argen-
tina had run out of dollar exchange.
Mr.. Morgenthau apparently had this
in mind when he explained to the
press the situation behind the deci-
sion to make the money available.
Good Business" to Help Sales
The Secretary said that to a
certain extent the Argentine ar
rangement would be a departure
from the original concept of the
sterilization fund. But he defended
the move on the ground that it was
aimed at helping friendly govern
ment stabilize its currency vis-a-vis
the dollar.
Mr. Morganthau explained that
the step would help in sales of mer-
chandise to the Argentine, and he
said the administration considers
this piece of good business.
The question was raised how the
United States would be assured that
the dollars would not flow to Ger
many or Italy.
Mr. Morgenthau said there was
nothing Argentina could buy from
Germany or Italy today and get
deliveries on it. He was asked
further whether he feared that
Argentina might use the American
dollars in partial settlement of in
debtedness to Germany or Italy.
The Secretary said he had COM
plete confidence in the good faith Of
the Argentine Government.
The technique of the operation
is that this Government would buy
Argentine pesos with American