EMBASSY OF THE                       
                  UNITED STATES OF AMERICA                  
 
Berlin, August 14, 1938
 
Dear Sumner:
 
 While I was in Nuremberg I had a talk with the
Argentine Ambassador, Labougle, who told me of a conver-
sation that I think will interest you.
 
 Labougle was seated next to the German Ambassador
to Argentine at a luncheon given by von Ribbentrop in
Nuremberg. During the course of the luncheon the German
Ambassador stated that it was a great pity that the
Argentine Government had changed its attitude to the ex-
tent which it had in relation to the activities of the
German colony in the Argentine. Labougle replied that
the Ambassador ought to understand why this attitude had
been changed, as his Government had only recently become
conversant with the extent to which the German Govern-
ment was trying to impregnate Germans abroad with Nazi
ideals, and even to the extent of proselyting for those
ideals on Argentine territory.
 
 The German Ambassador complained bitterly about
the influence of the United States, which he said was
increasing and increasingly hostile to all other nations.
Labougle replied that it was certainly true that American
influence was increasing, but that this was due to the
good neighbor policy that had been adopted by Mr. Roose-
velt, and which the United States had practiced for the
past six years. There was no longer any conflict between
the states of Latin America and the United States and
Labougle felt, and so informed the Ambassador, that on
the contrary there was unity of interest.
 
 The German Ambassador then complained about the
unfair practices of the United States in commercial
matters; how the United States Chamber of Commerce in
Buenos Aires had tried to oust German influence, and
how our diplomatic representatives had backed up these