Messersmith, G.S., Buenos Aires. To William L. Clayton, Washington., 1946 September 03

Reports on British-Argentine trade negotiations; Sir Wilfred Eady heads British mission to discuss sterling balances, meat prices, and sale of Argentine railways; British committed not to make new long-term trade agreements yet, but wishes to extend existing agreement; [Miguel] Miranda, President of Central Bank, conducted negotiations for Argentina; Miranda contended until matter of sterling balances was settled they could not discuss meat prices or railways; British mission felt the three should be discussed concurrently and negotiations broke down; Miranda good business man but knows little of world economic problems; was invited with Foreign Minister to supper with Perón; brought up subject of trade negotiations with British; told Perón that although not instructed to intervene by U.S. Government or requested to by British, would like to give him some personal and unofficial observations; told him agreement more important to Argentine than to British and deterioration in British-Argentine relations would have unhappy consequences; suggested ways in which agreement might be reached; Perón seemed appreciative; negotiations have resumed with Foreign Minister in charge for Argentina, instructed to discuss the three items concurrently; told British Ambassador, Sir Reginald Leeper, of talk with Perón, but asked him not to mention it to others.