LETTER TO MR. W. PARK ARMSTRONG, JR. FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R000900120042-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: September 2, 2003
• Sequence Number: 42
• Publication Date: June 11, 1954
• Content Type: LETTER

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I have forwarded a carbon co of
Mr. Armstrong's letter tofor
preparation of reply for your signature.
The attached reply has been coordinated with
Ikhieh concurs in the time limitations.
3 June 1954
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STAT
 THE SECRETARY OF s eproved For Release 2003/10/07 : CIA-RDP80R01731 R000900120042-8
DEPARTMENT OF STATE
As you know, the Treasury Department recently offered at sealed
bid public sale a steel rolling mill which had been constructed in
the United States for a Czechoslovak firm, but whose exportation to
Czechoslovakia had been denied and whose disposal had been made subject
to Treasury licensing. The successful bidder, at $9 million dollars,
was the Sociedad Mixta Siderurgia Argentina, a quasi-official Argen-
tine corporation controlled by the Argentine Government, and payment
was completed and the sale consummated on May 17, 1954.
Disposal of this steel mill to Argentina met and meets with the
approval of the Department of State. However, the possible implica-
tions of this transaction for United States policy aimed at denying
strategic materials to the Soviet bloc have been the subject of dis-
cussion and query elsewhere in Washington. Specifically, Argentina's
good faith has been called in question and the possibility of the
rolling mill itself or future products therefrom reaching the Soviet
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Impugnation of Argentine motives and intentions may owe its origin
in part to the fact that Argentina has trade agreements with a number
of the Soviet bloc nations (although Argentine products shipped have
been non-strategic) and that Argentina signed an unimplemerted and now
expired contract for direct purchase of the mill from the Czechoslovaks
last November.
The Honorable
Allen W. Dulles,
Director,
Central Intelligence ALency.
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In the interest of bringing to light all information which
may serve to clarify this matter, I should very much appreciate
your informing the Department of State what information, if any,
is presently contained in the files of your A-ency bearin,:; on answers
to the following specific questions:
1. Who, in detail, are the shareholders in the Sociedad.
Mixta Sideriirgia Argentina?
2. Is there any significant evidence tending to establish
that shareholding in the Sociedad ,ixta Siderurgia is
participated in by Soviet bloc nationals or sympathizers,
individual or corporate?
3. Is there any significant evidence teniting to snow that,
in connection with Argentine interest in the steel mill
in question, any "deals" ]Nave been made between Argentina
and Soviet bloc nations or (ruatenala looking toward ship-
ment to Soviet bloc nations or-Guatemala of any strategic
items prospectively to be fabricated by tcis mill?
The Department of State plans to inform t:ae Special Subcommittee
on Internal Security of the Senate Judiciary Committee, on a confidential
basis, of the results of further investigation and consideration of
this matter, and your reply to this letter will- be of distinct value
and assistance in this regard. The Department of State will, of course,
respect any stipulation which you may feel it necessary to include in
your reply with regard to protection of your agency as a source of
information.
In view of the expression of Congressional interest in this matter,
an early reply would be appreciated.
For the Secretary of State:
W. Park Armstrong,, Jr.
ec:ial Assistant, Intelligence
S_J
CRS
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