THE AMERICAN FOREIGN MINISTERS MEETING -- ARGENTINE ATTITUDES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900010174-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: May 23, 2006
• Sequence Number: 174
• Publication Date: February 12, 1974
• Content Type: REPORT

 Appro ease X00 /09/26 ? I DP8 00 5 19 OY0174-
MEMORANDUM FOR: I
OCI W
Attached is the material you
requested.
Chiet,
in America Branch
Office of Economic Research
Distribution: (S-5924)
D/OER
1 - SA/ER
1 - D/D
2 D/LA
F REP
L 1NO - 101 WHICH `MAYFDEMUSED.
(DATE)
(11 Feb 74)
(DATE)
12 FLB 1974 -
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Orig & 1 -_Addressee
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The American Foreign Ministers Meeting --
Argentine Attitudes
Of the eight major points on the agenda for the upcoming
American Foreign Ministers meeting, five are of a primarily
economic nature. The Argentine position/attitudes likely to
be taken with respect to each are summarized as follows:
A. Development Coordination
1. Argentina has long opposed discriminatory and
unilateral conditions on all international economic assistance not just US. In particular, relations with IMF, IDB and other
similar institutions have been seriously strained in the past
due to unfavorable country reports and recommendations which
Argentines felt ran counter to domestic political realities.
Recently, Peronists have taken a conciliatory tone to sources
of potential development assistance since the ambitious
three year development plan will depend heavily on inter-
national assistance for its success.
2. The question of collective economic security,
while finding a sympathetic audience, is unlikely to be a
point of major concern other than support for nations who
are concerned about US stockpile disposal policies on
relevant commodities.
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3. Argentines, and Peron in particular feel that
their exports should have freer access to the US market.
Peron has expressed repeated concern over bilateral balances
in her foreign trade and proudly pointed out that Argentina
ran a trade deficit with only two countries in 1973 -- Japan
and the US. At present, the major barrier to better balance
in US/Argentine trade is the fact that the US is a competitor
in grain exports while most Argentine meat products are banned
from the US market due to the risk of disease.
4. Argentina is probably in favor of strengthening
the Special Committee for Consultation and Negotiation
(SCNN) but may not be overenthusiastic about a major US role.
B. Economic Coercion
While Argentina can be expected to be sympathetic
to the demand against economic sanctions, it is unlikely
that Peron would wish to take a hard line unless great
political capital is achieved with other LA nations. More
likely, Argentina will express its opinion that US veto
power in international institutions has been a recurring
source of conflict in US-Latin relations which hopefully
would not be used in the future.
International Trade and Monetary System
As mentioned above, Argentina continues to pursue
bilateral balances in trade and has shown some initial success
in this endeavor thru new trade pacts with communist rations --
especially Cuba and the PRC. The major current Argentine
concerns on trade policy stem from concern over adequate
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supplies of industrial inputs such as steel scrap. The
nation at present is following a fairly protectionist import
policy and blocks nearly all imports of a luxury nature.
D. Transnational Enterprises
Recent Argentine experience with multinationals
has been generally good -- with a few exceptions. Peron
appears to have achieved his objectives for expanded Cuban
trade to include US auto subsidiaries. His position is fairly
clear in that no tolerance will be allowed for multinational
interference in domestic affairs. In this sense, he is more
moderate than many of his countrymen who would prefer to see
local interests of ITT and others expropriated at once. It
is unlikely that anything resembling a threat against foreign
companies will be made since this would run counter to recent
extensive efforts to woo new US investment into Argentina.
E. Transfer of Technology
Argentina has recently taken a rather hard stand on
royalty payments to parent companies of US subsidiaries.
It now taxes these as regular corporate income and has taken
a fairly strong stand that new private foreign investment
must involve significant technology transfer in order to
be treated on a preferential basis. Present foreign invest-
ment legislation contains priority provisions granting
special consideration to new investment in areas of significant
technology transfer for location in depressed regions.
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