REQUEST FOR FINANCIAL ASSISTANCE FROM ARGENTINE PRESIDENT LANUSSE

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-15-5-45-0
• Release Decision: RIPLIM
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: March 1, 2010
• Sequence Number: 45
• Publication Date: August 10, 1971
• Content Type: MEMO

~,.~.~.rr~---,.
~-
T / EXDIS
~~."
IN ORMATT~ ~~~~ ~
~'~ 1
TIONAL SECURITY COUNCIL 9 ~ ~r ; ~`'~ ~`w~ZGi~~
MEMOIi.ANDUM FOR: DR \~ISSZNGER
FROM:
SUBJECT:
achma n off ~"'
10 August 1971
Request for Financial Assistance from
Argentine President Lanusse
As you know, the President xeceived a message fxom Axgentine President
Lanusse for $500 rrtillian to $l billion in assistance to support the peso in
axder to perrxait him to stem Argentina's deteriorating economic situation
and to thereby continue his political policies aimed at returning the govern-
meat to civilian control. (Hewitt's memo on this is at Tab A. )
State recommended to the President that he tell President Lanuss
that it was simply not feasible for us to grovide assistance in the magnitude
requested but to indicate that we would like to be helpful and would be prepared
to participate with the international agencies in a sound economic program if
one can be worked out. The President approved this recommendation, and
the message was conveyed back
to Lanusse, who indicated he accepted our position.
525X1
We now have indications that President Lanusse is trying to use other channels
to present slightly modified versions of his xequest for massive U. S. economic
assistance. The Embassy Monday repoxted an approach by an Argentine in-
ventor to our Defense Attache (cable at Tab B), and Tuesday the Argentine
Naval Attache contacted Admiral Zumwalt on behalf of the Argentine CNO.
I continue to believe that the answex we have conveyed to Lanusse is the only
feasible one. The question is how to communicate this in the most gracious
and coopexative man
The best
way to communicate our position is to send a personal representative of the
President to see Lanusse to discuss the problem and to reiterate our offer to
SST /EX!]IS
No Objection to Declassification in Part 2013/03/19 : LOC-HAK-15-5-45-0
 No Objection to Declassification in Part 2013/03/19 : LOC-HAK-15-5-45-0
'.
SECRET/EX'DI5 - 2
be as helpful as we can consistent with our capabilities, but to steer Lanus se
clearly toward the international agencies. The difficult question to decide
is who we should send. _
I understand that State is thinking of recommending someone like David
Kennedy ar Nat Samuels. Howevex, a high-level Treasury official might be
snare appropriate in view of Treasury's familiarity with the workings of the
international financial agencies. $ob Horrnats and Z will explore this with
Treasury and State and staff this issue for you shortly. In the rneantirrae, I
want to flag this problem in the event it is raised with you.
Concurrence: R. Y~iarma~.
Attachrxients:
Tab A -- Hewitt memo of 2 Aug (31067X)
w/HAK note of 7 Aug
Tab B -- Buenas Aixes 3990 dtd 9 Aug 71
SECRET / EXDIS
No Objection to Declassification in Part 2013/03/19 : LOC-HAK-15-5-45-0