ARGENTINE REGIME

Evening Post, Volume CXXXVIII, Issue 24, 28 July 1944, Page 5

ARGENTINE REGIME

SANCTIONS POSSIBLE

(By Telegraph—Press Association—Copyright.) WASHINGTON, July 26. The State Department has denounced Argentina for deserting the Allied cause, and has decisively rejected suggestions for the reopening •of negotiations for the recognition of the Farrell regime. The Department recommended the isolation of Argentina to all the United and associated nations. The Associated Press says the denunciation is unprecedentedly blunt and strong. Copies of the statement have been sent to all the American Governments,, except Argentina. The State department said it possesses irrefutable evidence that Argentina quite recently favoured Nazi firms in contracts which called for materials imported from the United Nations." Also Argentine government contracts for public works were recently given to firms of enemy origin or co-operating with the enemy. On July 4 the Argentine Minister of Finance placed display advertisements in four Axis newspapers. Newsprint imported under Allied navicerts was supplied, with the Farrell Government's aid, to these four newspapers, which day after day have viciously attacked the United Nations and enthusiastically supported the Axis cause. The State Department said that for two and a half years Argentina had persisted in an open and notorious course of action which had given constant aid and comfort to the enemies of the American republics. DECEPTION CHARGED. Referring to Argentina's action in giving Axis diplomats a free run in Argentina, the State Department said that spasmodic token gestures of cooperation with the United Nations had been made by the Argentine Government, but these were designed' to do no more than foster a- false hope that Argentina might yet honour her solemn pledge of hemisphere solidarity. . The United States had replied to this that the principles for which the free nations were contributing the full measure of their resources could not be the subject of bargain. The controlling issue was the support in good faith of the Allied cause. The denunciation of Argentina is described in informed circles as the first in a series of steps to be taken against that country, and the opinion is expressed that severe economic sanctions may soon be invoked, says the "New York Herald Tribune's" Washington correspondent. It is pointed out that Argentina could be severely hurt if she were deprived of markets for beef at the height of the slaughtering season. Furthermore, the freezing of her "credits in London and New York would prevent her from purchasing farm machinery and other sorely-needed articles. The fact that Britain and America are not concerned about the wheat and meat which Argentina has been shipping to the Allies indicates that there are now sufficient supplies stored in England.