HC Deb 18 October 1944 vol 403 cc2383-5
85. Sir Frank Sanderson

asked the Parliamentary Secretary to the Ministry of Economic Warfare whether his attention has been drawn to the Argentine ban on Axis transactions, whereby all transactions in money or property between Argentina and the Axis countries, or countries dominated by Germany or Japan, are totally prohibited; and whether he is in a position, to give any further information on the matter.

The Parliamentary Secretary to the Ministry of Economic Warfare (Mr. Dingle Foot)

As the answer is a long one I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

Sir F. Sanderson

Does not my hon. Friend consider the Argentine Government's statement very timely and welcome—which may result in far reaching economic advantages and tend to cement the good relationship which has existed between our countries for over one hundred and fifty years?

Following is the answer:

Yes, Sir. The Argentine Government's decree No. 1875/44 of the 27th January, 1944, prohibited as from that date all commercial and financial intercourse with Germany and Japan, and with territories dominated by those nations.

With regard to the hon. Member's request for further information, I understand that the Argentine Central Bank's Circulars Nos. 349 and 351 of 27th January and 9th February gave instructions to Banks, Exchange Brokers and other Institutions dealing in exchange, in amplification of the Decree. The main provisions of these circulars were that transfers of funds and securities of all kinds to and from abroad in national or foreign currencies in favour of, for account of, or to the order of persons or firms domiciled in Germany, Japan and in territories dominated by them, were prohibited except with the express authorisation in each case of the Central Bank; moreover, credits, deposits, debits or withdrawals to or from cash or security accounts of all kinds in national or foreign currencies already opened or to be opened in the name of such persons or firms were also prohibited without like authorisation; finally, the Central Bank had also to give its express authorisation to all other operations in which such persons or firms had a direct or indirect interest.

In a further circular the Central Bank have explained that the decree of 27th January last regarding the suspension of financial and commercial operations with Germany, Japan and controlled territories 'applies to the transfer of all kinds of assets in Argentina belonging to persons and firms resident in above territories and also to all direct or indirect operations on their account.