Evening star., 1949-10-30

amounts to barter agreements
with France. Peru, Finland, Spain,
Italy. Chile and others.
The French agreement calls for
that country to purchase large
amounts Of corn, meat extract.
oilcake, eggs, wool, horsehair and
innumerable other Argentine
products. In turn Argentina Is to
receive such things as diesel en-
gines, bridge materials, automo-
biles, hardware and tools. office
equipment, precision and electri-
cal instruments.
But such agreements still do not
provide her with the things she
most needs. particularly agricul-
tural machinery. railway cars and
locomotives. steel rails. oil well re-
finery and all kinds Of industrial
equipment.
| And the British-Argentine trade
agreement has not worked out.
Under the latest f1ve-year pact
between the two countries London
was to buy in the first year at
least 100000 tons of meat. In
turn she was to supply Argentina
with 100000 tons of oil and vari-
Gus amounts Of machinery and
other manufactures. Then the
Attlee government devalued the
pound by 80 per cent. Fortunately.
this did not affect the price Of
meat because the possibility of
change in the value Of British
currency had been taken care OF
in the agreement.
| London Cries 'Blackmail'
But the British now want to
raise the price of petroleum by 80
per cent. In turn Buenos Aires is
demanding higher prices for meat
and threatening to reduce pur-
chases of British manufactures to
trickle. In London the cry of
"blackmail" is heard on every
hand. The truth of the matter
is that Britain has been unable to
meet the Argentine demand for
such things as railroad equipment
and other heavy machinery, even
at prices that average so per cent
higher than prices on the same
materials in this country.
In view Of this situation it is
easy to understand why the Ar
gentines are so anxious to obtain
these and other materials in the
United States. But not only does
she lack the dollars with which
to purchase them, her credit has
been practically cut off because
she still owes more than 500 ,000-
900 for goods our exporters have
already advanced her.
This is one Of the cold facts
which has brought about a change
OF attitude on the part of the
Peron government toward United
States business and industry. The
government now owns or controls
railroads, public utilities and
many manufactures. Through a
giant monopoly the state is in the
import and export business. When
business is bad, it is not private
industry which foots the bills, but
government.
The government also is respon-
sible for the skyrocketing OF wages
and the increase in the cost of
production. To keep the support
OF labor, the backbone of Peronista
power. wages must not only stay
up, but continue to go higher.
More than 100000 workers are
now on strike because the govern
ment has tried to stabilize wages
and salaries. Production in all
lines, agricultural as well as in
dustrial, has taken a nose dive.
Worse still. transportation facili-
ties are breaking down because of
lack Of new equipment.
Serious efforts are being made
to improve the country's credit
situation. In conversations held
several months ago Argentine Am
bassador Jeronimo Remorino as
sured Washington that his gov
ernment would set aside 20 per
cent OF all dollar income to pay
of the commercial debts to United
States exporters. These assur-
ances have been carried out. In
fact, to step up the payments,
since August they have actually
been setting aside 80 per cent of
their dollar exchange for this
purpose.
Let Up on Our Investors
There has also been q notice.
able letup in pressure against
United States investors and regu-
lation Of various North American
companies in Argentina. Sig
nif1cantly enough even the labor
courts have been denying many Of
the extreme demands of the work.
ers against United States enter
prise. President Peron is said to
have assured Ambassador James
Bruce. before the latter left
Buenos Aires. that there would be
no rash appropriation Of North
American business"
In the Remorino conversations
the Argentines also said that the
20 per cent export tax on canned
beef, normally one of our largest
purchases, would be removed.
This has not yet materialized,
but 1t is one Of the subjects now
being discussed by the Joint Ar
gentine- United States Committee.
The committee is also studying the
possibility Of increasing the sales
Of hides, tanning extracts. wool,
and 80 on. and discussing ways
and means Of inducing more
United States capital to go into
the country.
II progress seems Q little slow
it is easily explained by the fact
that the Peronistas are still chas-
4