Messersmith, G.S., Buenos Aires. Despatch No. 2023 to Secretary of State [George C. Marshall], Washington.
Date
1947-03-12
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Reports conversation with [Miguel] Miranda, President of Central Bank of Argentina, and next to President, in many ways most important man in Argentina; because of his competence, many functions, which otherwise would be handled by other ministries, are centered in the Bank and Miranda; Miranda frankly states he is not interested in politics, but is in Government to maintain private capital and initiative, which he believes to be foundation of any sound economy; he stated he was responsible for banking law enacted in early period of present Government and which has been criticized by foreign banks; law empowers Central Bank to excercise certain controls over foreign banks; Miranda stated law was necessary alternative to nationalizing all foreign banks as was advocated by more radical members of Congress, and does not work to disadvantage of foreign banks; he reported Government would reduce budget for Armed forces by 50 percent during the next year and cut number in armed forces from 100,000 to 70,000; Government determined to conserve resources for constructive puposes; shortage of man power in Argentina and 30,000 cut from Armed Forces can be added to work force; Argentina making commercial arrangements with her neighbors to assure herself of continued markets for agricultural products and sources of raw materials needed for industrial progress; Miranda referred to the Institute Argentino para la Promocion del Intercambio (I.A.P.I.); the Institute had been much criticized; he said if every move of Government in economic field had to be covered by separate law it would have been impossible to carry through a constructive program, but Congress at his instigation did create the Instituto, giving it broad powers; he mentioned specifically the meat agreement with England, the purchase of the American owned telephone company and the British owned railways would have been impossible without the Instituto; Miranda a much discussed and much criticized man, but in last few months many conservative business men who were his bitter opponents have come to realize measures taken by Instituto have gone far toward saving private initiative; Miranda ruthless in some of his methods and at times brusque in his conversation, but his word when given is dependable; his attitude toward U.S. formerly unfriendly but seems to have changed; unfortunate that he and [Juan Atilia] Bramuglia, two most competent men in Cabinet have no love for each other.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.