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Last year Argentine Foreign Minister Segundo Storni, considered the most pro-Allied member of the Cabinet, wrote a naive letter to U.S. Secretary of State Cordell Hull explaining Argentina's position.
From good, grey Cordell Hull, Storm's letter wrung a masterpiece of glacial denunciation and bad judgment. Argentine nationalists raged at the insult. Storni resigned.
This lesson in Argentine psychology might have taught Secretary Hull the danger of scolding haughty Argentines. But Hull's letter to Storni was only one of a series of denunciations. Backed by no threat of action, they merely made the Argentines angry, bolstered the popularity of the Colonels' Government.
Secretary Hull decided to get really tough with Argentina. State Department sleuths reportedly collected evidence that members of the Argentine Government had been mixed up with the Nazis. The British captured a German spy at Trinidad, and on his person found proof to the same effect. Both nations threatened to publish their findings. Apparently frightened, President Ramirez broke off relations with the Axis.
Stronger & Stronger. For a while it looked like a State Department victory. But the State Department had not reckoned with Juan Domingo Perón. He put himself at the head of the extreme nationalists in the Army who felt that Argentine honor had been smirched because Ramirez had yielded to foreign pressure. Ramirez was forced to resign. Vice President Edelmiro Farrell, Perón's old friend and front man, moved up to the Presidency. Perón, stronger than ever, became Minister of War. The State Department's pressure play had simply increased Perón's power.
Beef and Britain. Instead of speaking softly and carrying a big stick, the U.S. had been shouting loudly to cover up the fact that it could not use its big stick, for reasons of Hemisphere policy. The Argentines refused to be bluffed. Short of armed force, about the only effective action against Argentina would be a joint U.S.-British embargo on Argentine trade. Britain was reluctant, for three good reasons. Argentines knew all three.
Britain needed Argentine beef and other products, which feed much of its civilian population and many of the Allied soldiers fighting in Europe. Even under far stricter rationing, the U.S. could not replace the Argentine supplies. The enormous British investments in Argentina ($1,287,005,000) were a hostage for Britain's continued inaction. Most important of all, Britain considers Argentina a very desirable trade partner. She produces what Britain needs and needs what Britain produces. Britain had sound reasons for not wanting Argentina to be drawn into the U.S. orbit.
In the Hemisphere Doghouse. Last June the U.S. State Department finally lost all patience with Argentina, withdrew Ambassador Norman Armour from Buenos Aires, where he had had no official relations with the Government since the accession of President Farrell. Britain obligingly followed suit. So did most of the Latin American nations. Argentina found herself in diplomatic quarantine, recognized only by Chile, Bolivia, Paraguay and Ecuador among Hemisphere nations.