13 Nov. 1972

Dear Dr. Henry Kissinger,

The latest issue of TIME Magazine has a quotation from you in which you say that you know the starlets you date are not interested in anything about you except your power. You complain that they won't sit around and play chess with you. Well, of course not. I find it hard to believe that such an intelligent man as you did not realize that from the beginning. Of course I have heard another comment that you have made, namely that you date the kind of woman you are least likely to marry. Then why date?? Dating is for having fun, but it is also an opportunity for two people to get to know each other, perhaps well enough to want to take the fateful step into marriage. I understand that you are divorced, which means that you were married once and it didn't work out, or something.

What I really wanted to write this letter about, besides the issue over the comment in TIME, is to ask you how I could get a copy of your doctoral dissertation on Metternich. I don't know where you received your Ph.D. from so I have not been able to write for a copy. I am a Junior History/ German major at the University of the South, and your paper would fit in beautifully for a tutorial course I have in German History. I have an excerpt from "The Congress

[LC]

of Vienna: *A Repraisal*, but I do not know if that
is from your *dissertation*. It was printed in volume II
of *The European Past* edited by Clough, Gay, Warner and
Cammett, and the acknowledgement says that it appeared
in World Politics, Vol. VIII, No. 2 (January 1956),
pp 268-280. The Library here does not have *World
Politics* so I am stuck as far as finding a copy of
the complete work. If you could assist me, I would
be very grateful.

Finally, Dr. Kissinger, I know you are very
busy but I want to make one last comment: don't let the
starlets get you down. They see your name as a way to
fame and they want to take advantage of it. If you just
keep as you are, or go back to teaching, you'll be
happy and that's all that matters anyway.

Peace and long life,

Miss Robin Dahlstrom

SPO 197

Univ. of the South

Sewanee, Tenn. 37375

9 NOV 1974

Dear Mr. President:

Your kind and gracious hospitality to me
and Mrs. Kissinger made our visit to Kabul
unforgettable. It is an exciting, growing
capital city and I hope to return before too
long.

I am grateful for the time we spent
together. You have given me much greater
appreciation of Afghan perspective and goals
on many subjects and an appreciation of your
own earnest hopes for the nation you lead.
Thank you for your personal kindness, and for
the outstanding efforts of members of your
government to make my visit a success.

Henry A. Kissinger

His Excellency
Mohammad Daoud,
Head of State and Prime Minister,
Republic of Afghanistan,
Kabul.

["Kabul,\nRepublic of Afghanistan,\nHead of State and Prime Minister,\nMohammad Daoud,\nHis Excellence", "Henry A. Klaasen", "Respectfully,", "government to make my visit a success.\nthe outstanding efforts of members of your\nThank you for your beneficial kindness, and for\nour earnest hopes for the nation you lead.\non many aspects and an appreciation of your\nappreciation of Afghan perspective and dosa\ntogether. You have given me much greater\nI am grateful for the time we spent.", "kind and gracious hospitality to me\nYour kind and gracious hospitality to me\nYour

THE CASE OF

COMPAÑIA SWIFT DE LA PLATA, S.A.F.

**March 11, 1969**

Deltec Panamerica, S. A., transnationally owned investment and merchant bankers for Latin America, and IPL inc., the Chicago based successor of Swift Internacional, S.A., an Argentine-incorporated holding company for the international operations of Swift & Company which was spun off from Swift in 1918, combine to form Deltec International Limited. Immediately, work was begun to develop plans for obtaining local participation in the industrial subsidiaries acquired from IPL inc. By 1973, the meat processing facilities in Australia, Brazil and the United Kingdom had been sold for cash to local groups, and 54% of the New Zealand company had been sold to the public in New Zealand.

Cía. Swift de La Plata (CSLP) in Argentina was the largest unit of the IPL group of companies; one of Argentina's largest industrial companies and employers of labor; its largest meatpacker, increasingly specialized in the export of sophisticated, highly industrialized products many of them developed in its own unique research laboratory (it also had ancillary operations in vegetable oils, poultry, powdered milk and grocery products for local consumption); and the country's biggest single earner of foreign exchange. However, the company had been unprofitable for many years, a perpetual victim of Argentina's fluctuating policies with respect to the cattle industry, to meat exports and to exchange rates. CSLP had paid no dividends since 1962 and no interest on its debt to the parent company since 1967.

**March 12, 1969**

Deltec International begins advancing a further $4,000,000 to CSLP, used principally for re-equipment to comply with various importing countries' sanitary standards and for working capital.

**November 12, 1969**

Dr. Adalbert Krieger Vasena, former Minister of Economy of Argentina, joins the Board of Deltec International and is assigned the specific mission of developing a program to "Argentinize" the management and ownership of CSLP. This association between Dr. Krieger Vasena and Deltec is later used by Argentine nationalists as a pretext to slander and harass both.

**January, 1970**

Cattle prices begin a precipitous rise (they reached 0.82 pesos per kilo in March, up from 0.69 pesos in December). The then Minister of Economy Dr. Dagnino Pastore calls into his office the chief executives of the prin-

1

Principal meat packers, including CSLP, and requests them to reduce their purchases of cattle to stabilize prices. CSLP complies as to purchases in the Liniers auction market; nevertheless, CSLP's total kill during this period was only moderately reduced On the basis of their purchasing restraint at the Minister's request, CSLP, its president and other meatpackers and some of their directors were subsequently indicted for violation of the Argentine anti-trust laws and placed in preventive detention (released on bail).

**April 9, 1969**
The management of CSLP is replaced by an all-Argentine team headed by Mr. Enrique A. D. Holmberg (previously managing director of Ingenio La Esperanza, a highly successful Argentine sugar plantation and mill in which Deltec Panamerica had had an investment since 1957). Under Mr. Holmberg's leadership, CSLP made a dramatic recovery. Through April, 1970, CSLP production of frozen cooked beef (the highest return Argentine export meat product) averaged about 2,000,000 pounds per month. The new management succeeded in increasing this production to 3,100,000 pounds in May, 3,900,000 pounds in June and 4,800,000 pounds in July. At the same time costs were reduced by the equivalent of some $12 million per year, principally through the reduction of the work force, with the full cooperation of the labor union leadership, from over 18,000 to just over 10,000. Breakeven was reached in May and profits were generated in June, July and August, despite the continued rise in cattle prices which reached 1.16 pesos per kilo in September and 1.34 per kilo in October, 1970.

**April 9, 1970**
Deltec International arranges additional credit from abroad of $4,000,000 to finance the new management's increased volume of production. Other Deltec subsidiaries prefinanced shipments and financed importation of tin plate to the extent of nearly $2,000,000, so that between March, 1969 and November 1970, the net exposure of Deltec International in CSLP increased by nearly $10,000,000.

**May 10, 1970**
Deltec International executes and delivers to Mr. Holmberg an option to form a group of Argentine investors to purchase control of CSLP. When Mr. Holmberg proved unable to form a group, Deltec International gave options successively to a prominent industrialist on October 8, 1970; to the company's executives on February 9, 1971; and to another outside group on May 22, 1971. Finally, Deltec International made a firm agreement to turn over 100% of the equity to CSLP's executives on October 14, 1971, subject only to court approval of the creditors agreement that had been adopted on October 5 (see below).

2

**June 9, 1970**
The military junta under the leadership of General Lanusse removes from the presidency of the Argentine Republic General Onganía, under whose three-year rule the country had enjoyed political stability and rapid economic recovery, and replaces him initially with another general and eventually with General Lanusse himself. There followed a succession of finance and economy ministers hostile to the stabilization philosophy of Dr. Krieger Vasena and increasingly nationalistic; inflation soon reached galloping proportions. General Lanusse, a first cousin of Mr. Holmberg, scrupulously refused throughout his tenure to become involved in or even to discuss the problems of CSLP, leaving the matter to the discretion, occasionally conflicting policies and whims of a succession of various ministers of finance, labor, agriculture and industry.

**September 30, 1970**
Substantially the entire meat export industry in Argentina, including CSLP, closes down in the face of the increase of the cattle price to 1.30 pesos per kilo while the peso-dollar exchange rate remained unchanged, so that meat exports became totally uneconomic. Thereafter, the Argentine Government took a number of measures to improve the situation, including making available credit through official banking institutions. However, such credit was limited to companies more than 51% Argentine owned. The Government was at all times aware of Deltec's efforts to place the control of CSLP in Argentine hands, and indeed one reason these efforts were unsuccessful was the fact that the potential investors were never able to ascertain that, upon their purchase of control, CSLP would be treated as an "Argentine company" for all purposes. In this situation, the owners of a number of foreign owned plants settled their liabilities and one of them simply withdrew from the scene. For CSLP, the largest unit in the industry, this course of action was not possible and the only alternative that presented itself was insolvency proceedings.

**December 18, 1970**
CSLP applies to the competent court of the Argentine Republic for "convocatoria", a proceeding which contemplates (1) an immediate cessation of payment on all non-secured and non-preferential debts; (2) the continuation of the business under the company's own management; (3) the appointment by the court of a Referee to report on the business and the nature and amount of the assets and liabilities; (4) the proposal by the management of a "concordato", that is, a creditors agreement for the orderly repayment of the debts; (5) a meeting of creditors to accept or reject the proposal; and finally (6) the approval or disapproval of the agreement by the court; the rejection of the agreement by the creditors or the disapproval by the court

3

resulting automatically in bankruptcy. The case was in due course assigned to Judge Salvador María Lozada of the National Commercial Court of Buenos Aires.

December 24, 1970 Judge Lozada requests additional information as a condition to the opening of the proceedings.

December 29, 1970 CSLP files objections to the requirement for additional information as not required by law. Objection overruled.

February 1, 1971 CSLP complies with the December 24, 1970 request.

February 9, 1971 The Judge formally opens the proceedings.

February 11, 1971 The Judge appoints Dr. Asdrubal Olives, certified public accountant, as Referee. The Referee circulates creditors to submit proof of claims.

March 15, 1971 The CSLP management enters into a contract directly with Deltec's largest customer in the United States, pursuant to which the latter finances cattle purchases in exchange for the entire output of one of CSLP's plants. The resulting cash flow permits opening of the other plant with the result that by April operations are back to normal. During the period May through August, 1971, CSLP exports about $30,000,000 of product and earns an operating profit of 17,000,000 pesos, with the result that the loss for the eleven months ended August 31, 1971 amounts to only 1,170,000 pesos despite the six month shut-down of most operations, no local credit and continuing rise in cattle prices, which reached over 2.00 pesos per kilo in August.

June 23, 1971 The Judge orders preparation of an evaluation of the assets and business of CSLP by the Universidad Tecnológica Nacional (the Argentine national institute of technology).

August 6, 1971 Drs. Carlos R. S. Alconada Aramburu and Federico Gabriel Polak, Buenos Aires attorneys acting in the name of José Raul Zurdo, a small general creditor of CSLP, files with the Judge a pleading requesting the disallowance of all claims of other Deltec group companies, alleging acts of fraud and deceit, seeking extension of liability to other Deltec group companies, and calling for a protective order against the transfer of Deltec's other investments in Argentina.

4

August 26, 1971
CSLP presents a routine request to the Junta Nacional de Carne (JNC — National Meat Board, the regulatory agency for the meat industry which must approve all export sales as to price and otherwise) to sell 477 tons of meat extract at a net price of $3.234 per pound. During the early part of 1971 the Argentine industry had made a contract with the European buying group to sell specified quantities of meat extract at a price between U.S. $3.60 and $3.80 per pound. By June, CSLP had completed its contract and found itself in the unique position of having produced additional quantities while other producers were still delivering against their original contracts. After several months of negotiations, of which the JNC was kept currently informed, CSLP succeeded in concluding a new contract with the buying group (not to or through Deltec) for 477 tons at a price of U.S. $3.234 per pound. When the JNC refused to approve this price, the National Government, recognizing that CSLP did not have the financial capacity to carry the extract inventory, expropriated the first 100 tons which had been produced. On the same day that CSLP presented its application to export the 477 tons at $3.234 per pound, the JNC authorized another firm, Somaschini Abrante & Cia., to export 5,080 kilos of first quality meat extract to Genoa pursuant to shipping license no. 065547 at a price of $3.00 per pound, or $.234 per pound lower than CSLP's sale. The $3.234 price negotiated by CSLP was also higher than the $3.21 per pound overall average price of all Argentine meat extract exports effected in the first half of 1971 and substantially higher than the $2.49 per pound price at which exports were made during this period by CAP, the officially sponsored Argentine cattle growers cooperative. In the face of this evidence of discrimination, Judge Lozada in his opinion rejecting the "concordato" (see November 8, 1971 below) referred to the meat extract expropriation in connection with an alleged "tendency to sell product to other Deltec companies at lower prices than to other buyers."

August 31, 1971
The Universidad Tecnológica Nacional presents its report, in which among other things it states:

> "The industrial installations, the details of which can be found in the following pages, are in good operating condition and have recently been modernized for the production of frozen cooked beef, in accordance with the strictest sanitary rules. These meat products processed by the plant are therefore not subject to any restriction for export to any country in the world.

> Similarly, the section devoted to the manufacture of canned goods, especially Corned Beef, is entirely modern and all areas are covered

5

with stainless steel. This section has the most modern canning and sterilization machinery.

"The same may be said of its production line for both its edible products and non-edible products, constituting an integrated plant which is highly mechanized and one of the most modern and functional of South America.

"It is worthwhile mentioning that this plant produces beef extract concentrated from bones and is the only plant processing this product, which is totally geared for exports.

"It also has a high speed container installation which permits a production of more than a million containers per day.

"In short, the manufacturing plant, despite the age of some of its parts, has been entirely modernized and is able to produce a large variety of meat products which comply with the strictest current sanitary and quality requirements.

"Although it might appear irrelevant to the purposes of this report, we cannot omit comment on two outstanding aspects, demonstrated and recognized in the plant itself and which to our knowledge represent a very favorable contribution toward the entire operation and the anticipated results of this plant.

"The first refers to the prevailing sanitary conscientiousness. For a food products industry, as the one we are dealing with, sanitary techniques and rigorous quality control in all processing and activities, starting from its modern and well equipped bacteriological laboratory (containing a chromatograph) to the Quality Control Division, through the sanitary installations and the continuous diffusion of sanitary and health regulations...

"This concept has been inculcated in all levels and it is satisfying to observe the strict compliance with these regulations, no doubt uncommon in other facilities.

"The second refers to the 'spirit of the plant'. Modern authors (Chiselli and Brown: Industrial Psychology) maintain that in addition to the physical, functional and standards elements forming part of a manufacturing operation, there exists an imponderable element which distinguishes one industry from another, one plant from another.

6

"In the case of Swift in Rosario, there can clearly be perceived at all levels of its operation a sense of integration, each individual's backing of 'his' plant, an uninhibited and spontaneous support to what is considered the employee's source of work, a team spirit and a common purpose to overcome problems and go forward. All of this becomes something really praiseworthy.

"The spirit of this plant, which maintains its cohesion and its dynamism, is of great importance and we feel that it might be the principal element pushing toward improvement and continuous progress of the plant."

<table><tr><td>September 1, 1971</td><td>CSLP files its answer to the Zurdo intervention.</td></tr><tr><td>September 8, 1971</td><td>Deltec International, Deltec Foods and Deltec Foods (Benelux) object to service of process in the Zurdo proceeding.</td></tr><tr><td>September 15, 1971</td><td>The Referee reports adversely on a request of the CSLP management to proceed with a statutorily mandated capitalization of certain revaluation reserves (a strictly technical matter), and requests the Judge to order an injunction against any change in the status quo.<br/>The Judge denies the Alconada-Polak demand for a protective order against the transfer of Deltec's other assets in Argentina, but, in a separate order, issues precisely the protective order called for by Alconada and Polak ostensibly on the basis of the report of the Referee related to the capitalization of reserves.</td></tr><tr><td>September 19, 1971</td><td>CSLP submits its "concordato" proposal. The proposed "concordato" provides for the repayment of 100% of the debts over four years (10% in the first, 20% in the second, 30% in the third and 40% in the fourth year), with interest on outstanding balances of 12% per annum on local currency and 4% per annum on foreign currency debts to be paid in the fifth and sixth years; and offers to submit the company's management to the supervision of a creditors committee.<br/>The Referee files his report in which he places a value on the assets of CSLP (based on the Universidad Tecnológica Nacional valuation) of 556,223,360 new Argentine pesos and lists liabilities, including contingent liabilities, of 143,480,787.75 new Argentine pesos. The report also, among other things, criticizes certain transactions of CSLP, characterizes the conduct of CSLP's</td></tr></table>

7

management as "culpable" (as distinct from fraudulent on the one hand and innocent on the other) on a number of technical statutory grounds, and recommends the non-recognition of the "Deltec group claims" (including current commercial receivables based on product advances and tin plate shipments) on the theory of "penetration of the corporate personality."

September 22, 1971
Based on a complaint by a marketing cooperative in the interior alleging improper solicitations by CSLP of proxies for the creditors meeting, the Judge summarily removes the Board of CSLP and replaces the Directors by a committee of his own appointees.
CSLP, Deltec International, Deltec Argentina and Argentaria file appeals against the protective orders.

September 28, 1971
CSLP files, and the Judge denies, motion for leave to appeal the removal of the Board.
Deltec International, Deltec Foods and Deltec Foods (Benelux) file objections to the Referee's report insofar as it recommended disallowance of their claims.

September 29, 1971
Deltec International delivers to the Judge a letter offering to capitalize $9,215,617.31 (the financial debt) of its claims against CSLP. Neither the Judge nor any other Argentine court appears to have taken any notice of this offer.

October 4, 1971
CSLP, Argentaria and Deltec Argentina file objections to disallowance recommendation in the Referee's report.

October 4-5, 1971
Creditors meeting in the Teatro San Martín in Buenos Aires. Creditors holding admitted claims appear in person (including about 500 workers some of whose proxies had been impounded as allegedly improperly obtained) or by proxy. Creditors who had not previously filed their claims, including the foreign bank holders of CSLP notes issued to the order of Deltec Banking in 1967-68, submit their proofs of claim.

The Judge makes certain rulings related to the meeting. Among other things, he (1) confirms the disallowance of the "Deltec group claims"; (2) admits about half and, on the basis of technical questions, disallows the other half, of the noteholders' claims; and (3) converts all foreign currency claims into pesos at the day's rate of exchange, not only for the purpose of voting at the meeting (which is normal procedure) but also definitively for purpose of collection.

8

CSLP formally submits its "concordato" proposal and, after debate, consents to certain modifications as to the composition of the creditors supervisory committee.

Deltec International's capitalization offer is read at the meeting.

The meeting proceeds to a vote on the concordato proposal, which is approved by an 86% majority, as a proportion both of the number of admitted creditors and of admitted claims. Voting in favor were all of the banks, including the official banks; all of the workers; most of the cattle suppliers; and most of the commercial creditors. The "Deltec group claims" were not counted in the total of admitted claims and were excluded from voting.

October 5, 1971 CSLP brings a writ of error proceeding in the Court of Appeals against the removal of the Board.

October 7, 1971 The Court of Appeals rejects the writ of error.

October 8, 1971 The Judge declares the Deltec group companies liable for costs in the Zurdo proceeding.

October 18, 1971 The cooperative files a challenge to the concordato, based principally on the alleged improper solicitation of proxies.

October 20, 1971 The Judge extends the protective order to secure the payment of costs and attorneys costs by the Deltec group companies.

October 22, 1971 CSLP answers the challenge to the concordato.

October 25, 1971 Deltec International, Deltec Foods, Deltec Foods (Benelux) and Deltec Argentina file appeals against the imposition of attorneys costs and the protective order.

October 29, 1971 Evidentiary hearing on the proxy solicitation complaint.

November 8, 1971 The Judge issues his opinion in which he refuses to approve the concordato, decrees the bankruptcy of CSLP and designates the Federal Government as receiver-liquidator.

Within hours, the Federal Government designates Dr. Miguel Busquet Serra, an experienced meat industry executive, as receiver-liquidator and orders official banks to make credit available to CSLP.

CSLP files appeal against declaration of bankruptcy.

9

November 12, 1971 Deltec International brings proceeding for recognition of its claims and seeks Judge Lozada's withdrawal from the case for prejudice.

November 16, 1971 The Judge rules that the other Deltec group companies are contingently liable for the debts of CSLP that remain unpaid upon the latter's eventual liquidation.

The Judge awards attorneys fees to Alconada Aramburu and Polak equivalent to $150,000 and $25,000 respectively against the Deltec group companies.

November 23, 24, 30, 1971 Deltec International, Deltec Foods, Deltec Foods (Benelux) and Deltec Argentina file appeals against the extension of liability and the imposition of attorneys fees.

December 10, 1971 The Judge refuses to withdraw in response to the disqualification motion.

December 16, 1971 Deltec International moves for leave to appeal, which the Judge denies, the Judge's ruling on his own qualification.

December 20, 1971 The Judge permits the JNC to place in the record, without service of copies to CSLP's attorneys, a report (supplementing earlier reports dated October 20, 24 and 28, 1973) in which the JNC accuses CSLP of among other things selling product to Deltec owned distribution companies at lower prices than to others and making preferential payments to Deltec. These accusations, which are demonstrably false but which neither CSLP nor Deltec ever had an opportunity to controvert, are subsequently referred to in the Court of Appeals opinion.

December 23, 1971 Deltec International brings writ of error in the Court of Appeals in the matter of the Judge's disqualification for prejudice.

December 28, 1971 The Court of Appeals denies writ of error on the ground that the main evidence of prejudice was the content of the Judge's rulings, which were the subject of separate appeals.

June 6, 1972 The Court of Appeals (Panel C) confirms the bankruptcy of CSLP on the grounds that the Judge has the statutory authority to deny approval of a concordato as contrary to the "general interest", and that there were in the record sufficient "facts" (facts, including those alleged in the secret report of the JNC, that had never been proved and that none of the parties had ever had an opportunity to contest) to preclude a finding that the

10

Judge had abused his discretion. The Panel specifically ruled that there was no evidence of impropriety in the solicitation of proxies.

The Court of Appeals also reversed the extension of liability to the other Deltec group companies on the grounds that such liability had not been adjudicated in a proper proceedings and that the affected parties had not been properly brought before the court.

On the same grounds, the Panel reversed the imposition on the Deltec group companies of costs and attorneys fees. Alconada Aramburu and Polak appeal this ruling.

June 13, 1972
The full Court of Appeals censures and imposes the maximum statutory fine (about $40) on Judge Lozada for improper conduct in publicly commenting on the case in press interviews, on television and at banquets in his honor.

June 13, 1972
Frigoríficos Argentinos S.A. (FASA — the Wilson plant purchased several years previously by an Argentine group) files a petition for "convocatoria", after having been kept alive for over a year through massive injections of official credit.

June 26, 28, 1972
CSLP and Deltec International renew their motions, which the Judge denies, to disqualify Judge Lozada for prejudice.

June 30, 1972
CSLP submits to the Court of Appeals a petition for a hearing en banc based on a conflict in the construction by Panel C of the statutory phrase "general interest" with the construction placed on the phrase by other Panels in other cases.

CSLP also files for leave to appeal to the Supreme Court on constitutional grounds.

July 6, 1972
CSLP moves for leave to appeal, which the Judge denies, the Judge's refusal to disqualify himself for prejudice.

July 13, 1972
CSLP applies for writ of error in the matter of the Judge's refusal to disqualify himself for prejudice.

July 21, 1972
The Court of Appeals lifts the protective order insofar as it secured costs and attorney fees.

August 31, 1972
Deltec Argentina, having arranged a sale to an Argentine group of Argentaria, its investment banking affiliate, at a price substantially in excess

11

of book value, applies to the Central Bank for approval to carry out the sale. Under Argentine law, Central Bank approval is required for the transfer of control of any financial institution. It had been Deltec's intention, after receiving Central Bank approval, to apply to the court for permission to effect the transfer against a deposit in court of the proceeds of the sale. While the application was pending before the Central Bank, Judge Lozada on his own motion wrote to this regulatory agency a letter pointing out that the shares of Argentaria were not transferable in the light of his protective order, whereupon the Central Bank delayed consideration of the matter.

**September 5, 1972** The Court of Appeals en banc affirms the construction by Panel C of the phrase "general interest", in effect asserting that under the law of Argentina a lower court judge, including one that the same Court had censured for impropriety, has unlimited discretion in approving or disapproving a composition between a corporation and its creditors.

**September 6, 1972** The Court of Appeals, on the supposition that a proper proceeding might be initiated in the future, refuses to lift the protective order for the benefit of CSLP's creditors.

**September 9, 1972** Deltec International, Deltec Argentina and Argentaria request a rehearing on the refusal to lift the protective order, as having been imposed in a proceeding found by the Court of Appeals to have been improper.

**September 14, 1972** CSLP applies for writ of error in the Supreme Court seeking reversal of the bankruptcy decree as arbitrary and arrived at in violation of due process of law guaranteed by the Constitution of the Argentine Republic.

**September 9, 1972** Deltec International, Deltec Argentina and Argentaria appeal to the Supreme Court the Court of Appeals' refusal to lift the protective order.

**September 21, 1972** Judge Lozada, temporarily assigned to the case of Editora Codex, an Argentine company whose "concordato", which included provisions for the payment of external claims in external currency, had been approved one year earlier by another judge, orders Codex to pay its first "concordato" installment in pesos at the previous year's rate of exchange, citing as precedent his own ruling in the CSLP case. This Codex order is subsequently reversed and the original agreement reinstated by another judge definitively assigned to the Codex case.

12

<table>
   <tr>
    <td>September 27, 1972</td>
    <td>A criminal lawyer acting on behalf of Mr. Zurdo files a complaint in the criminal court against the directors of CSLP and of "all other Deltec group companies", alleging deceit and fraudulent bankruptcy. The Judge assigned to the case orders an audit of the Deltec group companies in Argentina and impounds the workpapers of Price Waterhouse &amp; Co.</td>
   </tr>
   <tr>
    <td>February 13, 1973</td>
    <td>The Court of Appeals declines to disqualify the Judge for prejudice on the ground that no irrevocable damage had yet been shown.</td>
   </tr>
   <tr>
    <td>March 13, 1973</td>
    <td>The FASA concordato, providing for the payment of debts over four years, including foreign currency debts in foreign currencies, is approved by another judge.</td>
   </tr>
   <tr>
    <td>March 8, 1973</td>
    <td>Two lawyers, one a candidate for the Senate and the other for the Chamber of Deputies representing a minority nationalist party, on behalf of a purchaser of a small claim from a general creditor, bring before Judge Lozada a petition to extend the bankruptcy of CSLP to Deltec International, Deltec Banking and each company in Argentina in which Deltec or CSLP has any substantial interest, based on the theory that all these corporations form part of a single company.</td>
   </tr>
   <tr>
    <td>March 11, 1973</td>
    <td>Argentine elections, in which the Peronist candidate achieves nearly a majority of the vote.</td>
   </tr>
   <tr>
    <td>March 20, 1973</td>
    <td>The Judge purports to serve process on Deltec International and Deltec Banking in Nassau by telegram.</td>
   </tr>
   <tr>
    <td>March 23, 1973</td>
    <td>The local companies severally file various procedural challenges to the new proceeding.</td>
   </tr>
   <tr>
    <td>April 6, 1973</td>
    <td>By order of Judge Lozada, on this Friday afternoon the offices of La Esperanza, Argentaria and Johnson &amp; Higgins, three Argentine companies in which Deltec has an interest, are invaded by Government tax inspectors accompanied by police. The agents made a thorough search of the files and took photo copies of various documents, concentrating on papers containing references to DIL or its directors. In the case of Argentaria, the Court of Appeals had already withdrawn the action from Lozada's jurisdiction. Because of the timing of the search, the companies were able only on the following Monday to seek relief from the Court of Appeals, which thereafter took jurisdiction of the entire case and is considering again a change of assigned judges.</td>
   </tr>
  </table>

13

August 9, 1973
The Court of Appeals dismisses the motion to extend the CSLP bankruptcy to the other Deltec group companies. According to the Court of Appeals, a motion in the bankruptcy case of one company was not the proper proceeding in which to determine the bankruptcy of other companies, but rather separate new proceedings would need to be initiated against such other companies before such a finding could be made. The Court of Appeals also held that the foreign corporations had neither been properly served with process nor had voluntarily submitted themselves to the jurisdiction of the Argentine courts.

September 4, 1973
The Supreme Court of Argentina, all of whose members were appointed after the March, 1973 elections, renders its decision on the entire case. In a long and detailed opinion, the Court affirmed the decision of the Court of Appeals in upholding Judge Lozada's declaration of CSLP's bankruptcy. In addition, the Court, reversing the Court of Appeals, held responsible for the bankruptcy CSLP's parent, Deltec International, and Deltec Argentina S.A., the local holding company for most of Deltec's other investments in Argentina. The Court thus reinstated Judge Lozada's order of November 16, 1971 but modified it by characterizing as joint and several rather than contingent the liability of the other Deltec group companies in Argentina for the debts of CSLP. The Court found ample evidence in the record that the Deltec group companies constituted a single economic enterprise and that the enterprise had conducted itself in a manner damaging to the national interest, although the only "evidence" of such conduct to which the Court refers is the JNC report (see December 20, 1971) on pricing policy which was never the subject of an evidentiary hearing and which contains its own refutation. Having found the Deltec group companies to constitute a single economic enterprise, the Court of Appeals was held to be in error when it determined that the other Deltec units had not been properly made parties to the proceedings; since they constituted a single enterprise, they were necessarily parties to the proceeding and had had ample opportunity to litigate all issues, including the issue that they constituted a single enterprise, and could not be heard to complain if they had failed to avail themselves of the opportunity to do so. The Court therefore remanded the proceedings to the trial court with instructions that the latter, among other things, ascertain which entities and persons were included in the economic group thus held to be liable. Proceeding to a decision of peripheral issues, the Court reversed the Court of Appeals' reversal of the award of costs and attorneys fees to Mr. Zurdo and Drs. Alconada Aramburu and Polack, and its lifting of protective orders to secure the same.

14

September 6, 1973

Judge Lozada, without awaiting the return of the record from the Supreme Court and ignoring the Supreme Court's order that he first proceed to ascertain which companies and persons were to be included in the Court's finding of responsibility, issued bankruptcy orders against thirteen companies which, according to him, were already shown in the record to constitute the Deltec group in Argentina.* These companies included Deltec International, Deltec Banking, Deltec Argentina, two operating and one inactive subsidiary of CSLP, Argentaria, its mutual fund management and distribution companies, three inactive subsidiaries and Ingenio La Esperanza, a sugar company. Interventors in all of these companies were appointed and the Referee in the CSLP bankruptcy was instructed to prepare a consolidated statement of all the assets and liabilities of the entire group.

* Values:

<table><thead><tr><th></th><th></th><th>U.S.$ equiv.</th></tr></thead><tbody><tr><td>La Esperanza</td><td>Book net worth</td><td>25,052,000</td></tr><tr><td>Argentaria</td><td>Arm's length offer (see August 31, 1972)</td><td>487,500</td></tr><tr><td>CSLP</td><td>Univ. Tec. Nac. valuation of fixed assets</td><td>96,698,000</td></tr><tr><td></td><td></td><td>122,237,500</td></tr><tr><td>Locally owed peso debt of CSLP</td><td></td><td>6,504,000</td></tr></tbody></table>

15

Mr. Monroe V. Davids
19021 Mills Choice Road
Apartment 5
Gaithersburg, Maryland 20760

October 27, 1972

Mr. Peter Rodman
c/o Mr. Kissenger' Office
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20005

Dear Mr. Rodman:

I spoke to you a few months ago on the telephone concerning my
possible relationship to Mr. Kissenger. I would have written
to you sooner, but I am a teacher and the first month was quite
hectic.

I have done a great deal of research into my family history. My
entire family stems from Germany. I came across a name in my
research of a Selma Kissenger. I have copied that section of my
family tree, where she appears, and have enclosed it.

Selma Kissenger was born on May 20, 1887 in Kissengen, Germany.
My research also points out that she died in Germany at the time
of Hitler. I would like to know if Mr. Kissenger or his father
might know if there is a relationship at all.

I have done a lot of work on my family tree and most of the people
died in Nazi Germany. Thus, most of my research is most difficult
due to most of the people in the direct line no longer being alive.
I really do have the feeling that we are related because of the
name and the town where she was born.

I would highly appreciate your showing this to Mr. Kissenger and
also having him forward this to his father, for any verification.
Please relate to Mr. Kissenger that it would be a real pleasure
also, to speak with him personally or on the telephone.

I was raised by my grandparents, who could only speak German. I
was born in the United States in Michigan, and I still can speak
German quite fluently. I hope to hear from you in the near future,
and I thank you so much for all your help.

MEMORANDUM

THE WHITE HOUSE
WASHINGTON

ACTION

July 11, 1973

MEMORANDUM FOR: HENRY A. KISSINGER

FROM: LES JANKA

SUBJECT: 1972 Mr. Travel Award

Travel magazine has selected you for its 19th annual Mr. Travel Award. The selection was made on the basis of balloting by 1,000 travel industry executives and editors who this year showed an overwhelming preference for you as "Mr. Travel 1972."

The article on page 50 of the attached July issue of Travel (Tab B) describes the award and hails your contributions to world peace. It notes that your extensive world travels have helped open avenues of understanding between nations and broadened the scope of safe international travel.

With this Award, you now rank among such previous winners as John Foster Dulles, 1954; Cardinal Spellman, 1955; Averell Harriman, 1967; and the Apollo II Crew, 1969.

A brief non-endorsing thank you note to the Editor of this obviously promotional magazine is at Tab A.

TRAVEL

JULY 1973

• THE MAGAZINE THAT ROAMS THE GLOBE •

75 CENTS

CROW INDIAN FAIR

AUSTRIA

EDMONTON

NEWPORT HARBOR

CORNWALL

19th ANNUAL
MR. TRAVEL AWARD
HENRY KISSINGER

Each year Travel sends approximately 1,000 ballots to the top executives and travel editors in the industry, on which they indicate their choice for recipient of the Mr. Travel Award. The results of this year's tabulation showed an overwhelming preference that Dr. Henry A. Kissinger be named "Mr. Travel 1972."

Most Americans are aware of the travels of Dr. Henry A. Kissinger during 1972 and in preceding years. And most, by now, know just how great an impact his diplomatic missions have had on the future of world peace. Since he assumed the post of Assistant to the President for National Security Affairs in 1969, he has engaged in secret peace talks in Paris, paved the way for President Nixon's 1972 trip to the People's Republic of China during his visits there in 1971, and was instrumental in negotiations leading to the continued improvement in relations between the U.S. and the U.S.S.R. He was a key figure in the talks that eventually resulted in a cease-fire agreement in Vietnam.

Heinz Alfred Kissinger was born in Fürth, Germany, May 27, 1923. In 1938, he and his family immigrated to the United States, and in 1943 he entered the U.S. Army and became a naturalized citizen. Thanks to his high I.Q., he was enrolled in a special Army college program. Training was followed by service in the European Theater of Operations, where he saw action in the Battle of the Bulge. He was assigned to the 970th Counter-Intelligence Corps where he served as a German interpreter for the commanding general. He was discharged in 1946 as a Staff Sergeant, having earned a bronze star and two letters of commendation. He remained in the Army Military Intelligence Reserve until 1959, eventually attaining the rank of Captain. In 1950, he obtained a B.A. in Government at Harvard, earned his M.A. there in 1952 and, in 1954, was awarded a doctorate.

Throughout his career, Dr. Kissinger has served both the intellectual community and the Government in a variety of ways. He has worked not only for his country, but for mankind as well—and has figured prominently in the course of world events, helping to open avenues of understanding between nations and broadening the scope of safe international travel. ♦

## QUALIFICATIONS FOR MR. TRAVEL AWARD

1. Be an American citizen who has traveled extensively for either business or pleasure or a combination of both during the year for which this award is made;

2. Add to the respect and esteem of American institutions and culture by his personal demeanor during his travels;

3. Help further the cause of world peace and mutual understanding among nations and individuals as a result of his travels, and in keeping with the objectives of the National Travel Club "to establish a closer relationship between all peoples in order to secure lasting peace."

## PREVIOUS WINNERS OF MR. TRAVEL AWARD

1954: John Foster Dulles. 1955: Cardinal Spellman. 1956: Danny Kaye. 1957: Richard M. Nixon. 1958: Lowell Thomas. 1959: Dwight D. Eisenhower. 1960: Ralph Bunche. 1961: Jacqueline Kennedy. 1962: Voit Gilmore. 1963: Bob Hope. 1964: Conrad Hilton. 1965: Hubert Humphrey. 1966: W. Averell Harrell. 1967: Laurence S. Rockefeller. 1968: Billy Graham. 1969: Apollo 11 Crew. 1970: Crew and Staff of the S.S. Hope. 1971: Duke Ellington.

50

TRAVEL, JULY, 1973

menco for beauty and solitude. The fine-grained co-
ral sand contains numerous shell fragments and
skeletons of marine animals, and scavenging for
whole shells can be rewarding. Coconut and sea
grape grow down to the waterline, and behind them
are forests of mangrove, host for edible mangrove
oysters. Although both islands are Navy preserves
(United States Government Property, Do Not Enter—
Prohibido Entrar), the Navy is nowhere in evidence.
The Culebrita beach is beautifully sheltered, and at
one end the tide line is alive with edible turban
snails. At Luis Pena, two excellent snorkeling reefs
lie just offshore.

Not all of Culebra's sights lie in the water. The entire island has been a wildlife sanctuary since the early years of the twentieth century. A site study of Culebra last year found 64 varieties of common birds, including the unusual sooty tern, alone with thousands of lizards and turtles. Walking along cow paths from one's inn to the beach, it is impossible to take a step without flushing birds.

According to a recent government study, the only entertainment on Culebra is "watching television, playing baseball, and drinking in bars." The bars open with the appearance of the first customer in the morning and close at night with the departure of the last. It is possible to visit the local cheese factory, a hillside farm that presses cows' mile in a series of outbuildings that seem to challenge the sanitation laws but apparently do not. If you arrive when the cheese is fresh and hot, you can enjoy a delicious al fresco picnic. There is also a farmer who raises guinea hens, and for a dollar will let you shoot your dinner (bring your own pistol). Another increasingly popular pastime is horseback riding.

But for the most part there are just the beaches,
the reefs, and the paperbacks you brought along in
your suitcase. "Planes flying overhead I consider a
little bit of romance," one weekend Culebran told me
on my recent visit to the island. These are some of
the overnight accommodations presently available
(reservations are recommended):

1. Seafarer's Inn on Sardine Bay (Jane and Druso Daubon). Eight rooms, two with private bath. $8.00 a day CP, $13.00 double, $2.00 for children in the same room. Rates for meals vary. Cars rent for $10.00 a day, Boston Whalers for $20.00 and $40.00. Snorkeling equipment, including a compressor, are also for rent. The cooking, by Jane Daubon, is superb.

2. Villa-Boheme on Ensenada Honda (Gail and Jack Vincent). Kitchen-bedroom-bath units that rent for $10.00 a room. Snorkeling equipment, a sunfish, and a Cal 28 are for rent.

3. Hotel Puerto Rico in town. Fifteen rooms, none with private bath. Rates comparable to the Seafarer's

Inn. The meals—rice and beans, fried fish, chicken—
are typically Puerto Rican, and are served until the
pot is empty.

Culebra is easily reached from San Juan by air.
Both Vieques Air Link and North Cay Airways fly
several small planes from the Isla Grande airport in
San Juan ($2.00 by taxi from the International Air-
port). The fare is $12.00 round-trip, and the flight
takes about twenty minutes.

Access to Culebra by boat may prove somewhat
less convenient. You must drive to Fajardo, about an
hour and a quarter west of San Juan, and then
catch the boat which leaves daily at varying times.
On a clear day, the two-hour trip past numerous
small islands is a pleasure in itself. For those with
weak stomachs, however, rough seas should be
avoided. In any case, the fare is $4.50 round-trip.

Visit Culebra soon, and you may be an eye-wit-
ness to the stirrings of a Caribbean resort of the fu-
ture. Wait too long, and you might have to look for
new islands to discover. ♦

Beach on nearby Cayo de Luis Pena rival's Flamenco.

TRAVEL, JULY, 1973

49