Evening star., 1950-12-10

nero on 1tS crltlcS ana enemies a
arbitrary restrictions on the liz
freedom of the press, the free
expression of opinion by political
parties. groups and individuals
It also maintains the strictest
controls on business and financial
enterprises and bears down on any
concern that fails to toe the gov
ernment mark.
But the present world situation
finds this traditionally Individual
istic. not to say neutral" nation
lined up with the United States
and other American republics. In
fact, the Pacific war has actually
served to draw the two govern
ments closer together. Insofar as
Official contacts between Wash
ington and Buenos Aires are con-
cerned, relations between the
United States and Argentina are
today unprecedentedly cordial.
But the most unusual change
brought about in Argentina by
the current world emergency is
In the economic field. Before the
Korean conflict. the Peron regime
was looking directly at bank
ruptcy. Exports, Argentina's life
blood, had reached an all-time
low. England, always the surest
Argentine market, had stopped
buying Argentine beef. In fact,
the British have purchased prac-
tically no Argentine beef or NUT
ton since last June, and there are
no immediate prospects for a re-
sumption of large-scale purchases.
Although arrangements were
already under way for a loan. or
credit" from our Export Import
Bank, to bail out United States
exporters, and the Argentine gov
ernment had itself relaxed con-
trolls and crippling export taxes
on products which ordinarily sold
In this country, we were still buy
Ing comparatively little. With
some $3.50 million still owing to
our tradesmen and exporters, only
q trickle of goods from this coun-
try was arriving at Buenos Aires.
Trades With United States
But since late June United
States-Argentine trade has been
spiraling upward at an unusual
rate. The Buenos Aires govern
ment reports that during the
month Of August this country ac-
tually replaced Great Britain as
the principal market for Argentine
products, and also became the
chief supplier of agricultural and
other machinery in Argentina
Naturally. the increased purchases
Of canned meats by the United
States has been due to the cutting
off of shipments of frozen beef to
England. The packers are can
ming more beef and this country
has long been the principal buyer
of Argentine canned meats. These
purchases have been stepped up
during the Korean conflict. Re
liable reports indicate that ar
rangements to ship frozen beef to
United Nations forces in Japan
and Korea had already been made.
AS to exports from this country,
for the first time in many years
the Argentines are actually buying
United States coal instead of Eng
lish coal. Sizable orders for rail-
road equipment have also been
placed in this country. although
Argentine railroads are nearly all
of British or European gauge.
The much-discussed loan from
the Export Import Bank has final
ly been approved and put into
effect, and in the next few days
American exporters are supposed
to be receiving payments for out
standing debts from shipments
they made to Argentina prior to
May Is of this year. Although
the loan calls for $125 million ii
seems that less than this will be
required to take care of the COM
mercial obligations, which means
that the Argentine government
itself has been discharging some
obligations during the past few
months.
For the first time the plan fol-
repayment of this loan has been
made clear. At least, according tc
official circles in Buenos Aires. il
is to be repaid in 20 half-yearly
installments, the first of which
will fall due on June 20, 1854. The
interest on the loan is 3l2 pei
cent paid semiannually. Although
the Argentine government is actu-
ally responsible for the loan, II
has been made through 10 Argen-
tine commercial banks. several oi
which are official or semiofficial
The National City Bank of New
York and the First National Bank
of Boston, two of the largest
financial institutions in the coun.
try, are not parties to the agree.
ment, but, according to the Ar.
gentineS, will receive direct bene.
fits from it in the same manner
as the other Argentine banks.
Aided by War Before
Although this loan has nothing
directly to do with present or fu.
ture exports and imports, indi.
rectly it will certainly bolster tht
credit of the Argentine natior
and Argentine firms. Meantime
increasing amounts of dollars are
pouring in for the purchase O.
Argentine canned meats, hides
quebracho Canning extracts anc
wool.
1t should be pointed out tha
not only the increased amount O.
purchases but the rise in price.
for these exports accounts for thu
tremendous increase in the &C.
cumulation of dollars in Argen.
tina. Another important item i.
that United States oil refnerie.