Hard Reality

When big, friendly Businessman James Bruce checked in last year as U.S. ambassador at Buenos Aires, he had high hopes that the U.S. could do business with Argentina. He learned a little Spanish, hit it off so well with President Juan Peron that the two were soon back-slapping each other.

But personal friendliness could not soften the hard reality that Argentina was running out of dollars and smack into a first-rate financial crisis. Moreover, the Peron plan of exacting heavy tribute from hungry Europe for Argentine produce was beginning to backfire.

Easygoing James Bruce soon had headaches galore. Argentina had stopped payments on U.S. investments. Strict regulations worked against U.S. capital and business in Argentina. Last June the U.S. contributed a crusher: EGA hinted that unless Argentina stopped gouging its customers, EGA would buy no Argentine wheat or beef--in other words, Argentina would get no dollars through European financing.

Last week Ambassador Bruce was back in Washington talking things over. Bargain buying by the U.S. Army of small lots of Argentine beef, lamb and turkey for use in Germany suggested a far from united economic front against Argentina. What went on? EGA, which holds the strings of the biggest purse, gave Ambassador Bruce the score. The EGA would not spend a dime of the U.S. taxpayer's money in Argentina until the Peron government gave some hard & fast promises to: 1) sell to the U.S. at world prices; 2 ) sell to Marshall Plan countries at world prices; 3) resume payments on U.S. investments in Argentina. Because Europe and the U.S. expect bumper crops this year, EGA can get along without Argentine produce.

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