EXHIBIT No. 175

BUENOS AIRES, May 20, 1936.
Air Mail

Mr. J. F. TIPPETT,

New York.

DEAR MR. TIPPETT: Last week the Casado Co. invited me to a meeting, to be held at their offices on Friday the 15th inst., by the Paraguayan group, which I attended. Mr. Casado explained that the reason for calling us together was the new taxes, imposed by the Paraguayan Government, of $1.50 Paraguayan cy. per ton of quebracho extract and $10. Parag, cy, per head of cattle after the same is 1 year old. It appears that before these duties were insignificant, for instance the duty on quebracho extract was about $0.25 Parag, cy, per ton. The new duties are to be put into force effective January 1, 1937. The other point, which is more important at present, namely the labour trouble, was discussed at length. Mr. Casado urgently recommended the companies to shut down their factories for a few months, giving as an argument lack of guarantee, insufficient number of men, etc. but his proposition did not find any encouragement on the part of the other people, viz, Guaraní and Sastre. The question with Casado is that he has about 3,000 tons quebracho extract stored at Buenos Aires and another couple of thousand tons at his factory, which allows him to close his plant for 3 or 4 months without any prejudice to him. He, Don José Casado, is leaving for Paraguay on Saturday the 23d to personally study the situation. Anyway, no promise was made by any factory to adhere to Casado's scheme and things were left as they were. On Monday Guaraní telephoned us, asking to call on them in the afternoon when they would acquaint us with important news received from Paraguay, Casado and Sastre were also present. Guaraní than informed that they had received an urgent cable from their Administrator, recommending them to close their plant on account of the unbearable situation. They read us a report received from Asuncion, painting the situation there in the darkest colours, on the other hand Sastre and Casado had reports, which would indicate that the situation was improving, the more so as both, Sastre and Casado, reported that they had arranged their differences with the labour and that only very little trouble was expected. Sasado urged Guaraní to close their plant, promising to follow their action as a demonstration against the present difficulties. Guaraní seemed inclined to accept but Sastre persuaded them not to take such a strong measure, which, far from serving their purpose, would cause them still more trouble. Thereupon Guaraní decided to cable their agent in Asuncion, instructing him to submit the matter to the President of Paraguay with the understanding that they would only close their plant if they could not obtain the necessary guarantees from the Government. We met again yesterday afternoon and tried to get into touch with Asuncion by telephone, which proved impossible owing to weather conditions. This morning Guaraní received a wire from their agent in Asuncion, stating that he had interviewed President Franco and that the President has given him all the necessary guarantees, which will permit them to continue working. The President has promised to send a special delegate of his confidence to Guaraní by airplane to act as his representative, furthermore he has promised to increase the detachment of troops stationed at Guaraní and requested Guaraní not to yield to the conditions submitted by the strikers but to send the conditions to him. This is more or less in line with the attitude adopted by the President in settling the conflicts of other companies. As you will see, the President's attitude satisfies Guaraní's demands, permitting them to continue working. From reports received through diplomatic channels it appears that the situation in Asuncion was very tense last week. There were riots in the streets and the police were obliged to disperse the crowds by using their arms. It seems that the most responsible party for this situation was the Mexican Minister, who protected the Communist leaders. Some of the latter have been deported to Argentina but were refused admittance in this country and consequently were returned to Paraguay. The Mexican Minister has been declared persona non grata, which puts an end to part of the trouble. The ministers have resigned and the cabinet has been reorganized, leaving out the two brothers Frere Estevez, who have fascist tendencies, and Jover Peralta, Minister of Education, who is a Communist. It would seem that the Government has strengthened its position but the same reports also indicate that General Estigarribia is now again gaining partisans so

that it is rather difficult to say what the future will bring. These reports were submitted to us as absolutely true. I, of course cannot guarantee for their exactitude as it is impossible to obtain a correct information through the ordinary channels.

Casado advised me that they were going to put another boat between Buenos Aires and the Alto Paraguay and inquired whether they could count on us for freight. I replied immediately that we had a contract with Mihanovich, which forbids us to use any other service.

The manufacturers are meeting today to study the exchange question. It seems that the Exchange Office of the Government will, from the 1st of June on, put a uniform value for quebracho extract to be exported and that the manufacturers will have to sell the equivalent in foreign currency at the official exporters' rate of exchange. This is a consequence of the disparity with which the different manufacturers handled the question of exchange as, while some of them delivered all the foreign currency at the official rate, others retained a good part of it, by indicating a lower price, which they sold in the free market. Now the question is the following: Will the Exchange Office accept the figures submitted by the manufacturers or will they fix an amount, which may be altogether too high? This subject does not concern the Paraguayan manufacturers and will have no bearing on us.

I had lunch today with Mr. Marti, during which we reviewed the situation in general. Mr. Marti told me that the conditions were normal, i. e., more or less as last year, and that he expected the sales to pick up within the near future. He told me that the Chaqueña Co. have now notified the center that they will pay their contributions at the end of each month instead of quarterly and in advance. Although this small point would not mean much, still it goes against the organisation as the rest of the manufacturers pay quarterly and in advance. Mr. Marti said that, in order to avoid further discussions, they have accepted Chaqueña's imposition for the time being.

Another matter, which has caused a lot of excitement amongst the manufacturers has been the inopportune declaration, made by the chairman of the Forestal during the annual meeting of the shareholders, viz, that the understanding of the manufacturers was performed under the auspices of the Argentine Government, in other words, that the Argentine Government was really responsible for the agreement and that it was protecting the same. This news was reproduced all over the world and the La Prensa, the most important paper on the Southern Hemisphere, has seized the opportunity to denounce the huge profits made by the quebracho manufacturers, profits which in their opinion mean a loss for the Argentine Republic on account of the decrease in the export of both, quebracho extract and logs. I am enclosing herewith the article, as appeared in the La Prensa of Monday the 18th inst., and we would add that this paper has on more than one occasion criticized the so-called "gentlemen agreement." Mr. Marti told me that he is at a loss to understand how the Baron made these declarations as Mr. Sullivan has always stressed the necessity of not mentioning the Argentine Government in connection with the manufacturers' agreement. a fact which can be noted in the balance sheets of the other companies, who, referring to the higher prices, explain that they are due to a better understanding in the sales policy abroad. Anyway, I hope that his faux pas will have no serious consequences.

With kindest regards and best wishes, I remain,
Yours sincerely,

Mr. E. Hope NORTON,

Puerto Pinasco, Paraguay.

INTERNATIONAL PRODUCTS CORPORATION.

EXHIBIT No. 176

NOVEMBER 16, 1939.

DEAR MR. NORTON: I acknowledge receipt of your cable dated Pinasco November 11, which was received Monday morning, November 13, from which I quote as follows:

"Accept Republic proposal No. 3 assuming will obtain orders second 6 months if prices satisfactory".

I conveyed this information to Mr. John M. Clair by telephone and he advised me that he was disappointed that you had not accepted proposal No. 2, which called for the larger quantity. He stated that I gave him the impression that International Products Corporation would take care of their requirements and, accordingly, it would seem as though we were letting him down. I reminded

him that he suggested proposals No. 2 and 3 and left the acceptance of one or the other to you. He then advised me that if the acceptance of No. 3 was the best we could do, he proposed to get prices from the other packers for the balance of the quantity he would require during 1940. I then reminded him of his arrangement that, inasmuch as we preferred not to accept a contract for a year's supply, he would take a contract for 6 month's supply and then in April or May negotiate with us for the balance. He said this was true but that he did not see any reason why he should not protect himself at this time. He finally concluded by saying he would consider the matter with the other members of his firm and would send me an air-mail letter that night. The letter should have been received Tuesday morning but wasn't. I, however, decided it was best to make no further move. Late Wednesday afternoon he telephoned me saying that after a careful check with his partners, the minimum requirements for the first half of next year indicated they would need an additional 12,500 cases of No. 2 canned corned beef and asked if I would convey this request to you by cable. He told me he had not made any overtures to any of the other packers and agreed that if you would grant the additional 12,500 cases of No. 2's he would sign a contract for 6 months for the following quantities:

62,500 cases 24/12-ounce No. 1 canned corned beef, at $3.27 per case 62,500 cases 24/12-ounce No. 2 canned corned beef, at $2.97 per case 12,500 cases 24/12-ounce No. 1 roast beef, at $3.42 per case

2,500 cases 12/6-ounce No. 1 canned corned beef, at $11.00 per case

and that late in April he would negotiate with us for the quantities he would require for the balance of the year. As this seemed a reasonable request and as he explained to my satisfaction his carry over at the end of the year and the amount of business he expected for the first half of 1940, I cabled you as follows: "Advised republic your acceptance proposal 3 and today Clair telephoned that after checking requirements first half year they wish increase quantity No. 2 12,500 cases. Strongly recommend acceptance".

and to which you replied on November 15 as follows:

"Accept Republic proposal increase No. 2 12,500 cases. Advise me when contract signed."

I am glad that you agreed to the increase in the quantity for Clair because, frankly, he was rather inclined to be uncompromising when I first telephoned him.

Mr. Owen is now preparing a contract which he has indicated need not necessarily be in the same form as last year's (which he considered a continuing contract), but rather in the form of a contractural letter referring to the 1939 contract and which, in talking with Clair he indicated would be satisfactory to him. I expect Mr. Owen will complete the letter today, which I will forward to Republic and should have Republic's acceptance by Monday, or Tuesday, of next week, at which time I will cable you.

I neglected to acknowledge receipt in my last letter of your cable dated November 9 from Pinasco advising that Major Sharp was now manager at Pinasco and in making up his semimonthly check November 15 we calculated 8 days at the rate he received prior to going to Pinasco and 7 days at the rate he is to receive as manager at Pinasco, all of which I hope is in accordance with your wishes.

In my last letter I mentioned a cable from Mr. Seldes dated November 4 advising that the quebracho prices would be advanced $5 per ton. On November 13 we received a cable dated November 10 (November 11 being a holiday) advising that the increase was not $5 but $3 per ton. Accordingly, in a conversation with Mr. Ely it was agreed that the new quebracho price would be 42 cents per pound, or an increase of % cent, effective November 13.

In talking with Mr. Ely the other day he advised me Mr. Sullivan was in Boston and was not expected in New York for several days, and that there was no change as far as he knew concerning Mr. Sulivan's arrival in Buenos Aires, which I indicated in my letter of November 9 would be some time during the last half of December.

I am enclosing recent weekly cash reports and also the latest daily cash re ports, which should keep you posted concerning our cash position.

We have had some rather heavy remittances to make to Asuncion and Buenos Aires and for your information I am listing below the remittances expressed in Argentine pesos with the cost per peso of same since November 1.

I enclose a clipping from the New York Sun Monday, November 13, which I am sure you will enjoy reading and, incidentally, was the cause of considerable concern to Mr. Houston and Mrs. Parkhurst.

Mr. McCarty has been in to see me a number of times since you left, with reference to Torex and has an idea that he can interest some friends of his in forming a small company that would take over the sale of Torex. They would enter into a contract with us to buy Torex at a stipulated price, they would advertise Torex on the radio once or twice a week and in addition would have two or three specialty men calling on the grocers, etc., who handle Torex. As the orders were received McCarty's company would turn them over to us and we would fill them from our Arlington plant, billing McCarty's company with the quantity shipped.

Mr. McCarty believes that they can stimulate the sale of Torex and he states the company which he would form would not expect anything in the way of profit until some time in the future. He further states that if, after trying it out for a while, it was not successful then, of course, he would relinquish the contract he had for the sole distribution of Torex in the United States and we would have the benefit of the radio advertising and specialty work his company had accomplished. The proposal sounds all right, but I am afraid we would not be able to agree on a satisfactory price for Torex to Mr. McCarty's company, as, having to bear the expense of radio advertising and specialty work, they would expect to buy Torex at a very low price and we, on the other hand, could not afford to sell Torex to him unless it would show us some profit. At any rate, it is all in a more or less uncompleted state and if we can work out a satisfactory arrangement I will, of course, submit the particulars to you before we close with

him.

For the first half of November we have accepted orders for 130 tons of Supremo and 35 tons of Luna and 643 tons of Las Palmas brand. Our invoicing of Quebracho for the first 16 days of November amounted to 1,030 tons of our own brands and 210 tons of other brands.

You undoubtedly know that Mr. Seldes was successful in substituting Casado extract to fill the order we had for Forestal for 535 tons of Supremo for delivery in Buenos Aires for shipment to Japan. We paid for the Casado extract with a dollar draft and have since received from Forestal the sterling representing the sale. The net result of the whole transaction represents a loss of a little more than a $1 per ton, which, as explained in a previous letter, is really not a loss at all, as we will use this extract to fill orders for North America which will net us a nice profit.

With best wishes, I am

Sincerely yours,

MY DEAR JACK: I thing we have been a couple of very bad correspondents the last few months and I for one have missed greatly the closer contact which I enjoy so very much. We both of us have been extremely busy and I suppose that accounts for our lapse.

We are returning to Mr. Aragon the proposed agency contracts, with some minor suggestions, and in this connection I want to thank and congratulate you for producing such an eminently fair and equitable document. I am sure that with the few changes made there will be no difficulty in operating under it.

If it is possible we would like to know definitely what manufacturers we are to represent. I understood from my telephone conversation with you in December that we would have the following brands:

Fusionados

Casado
Guarani
Baranda

and International understand that they will have:

Ꮓ

La Cruz
Cielo

Sastre

As regarding the log situation, not having heard anything from you, I presume, and am happy in the thought, that you have made some definite arrangement as to the tonnage we can export annually. I have heard rumors here that there has been a definite maximum tonnage allocated for world consumption, and I of course will be interested to know whether that is true and how it operates. I am giving the International Products Corporation problems a lot of my time, and, as previously told you, have found that there is a lot to be done to straighten out that problem. I am working slowly so as not to upset the apple cart any more than is necessary.

I have made them procure from Scott his definite recommendations as to the spending of some 20,000,000 Paraguayan pesos which are bottled up in Paraguay, and we have definitely authorized him to use those to increase his tangible assets and to spend them on labor for future use. I would much rather have logs, Quebracho lands, and sub-grades for future rail extension than Paraguayan pesos in the bank.

I have had very nice letters from the Baron in connection with International Products, and he seems happy with the way I have progressed so far. I feel that we can make this concern a very attractive one and our investment of real value, given a little time. I feel sure that Scott will cooperate to help make the thing go, and as far as Tippett is concerned, we will have to wait a while to see whether he functions as we deem necessary.

I am getting their sales policies straightened out and believe now there will be no more monkey business.

I have made no definite plans about going to London, but rather expect to go sometime during March, as soon as I can get two or three important things finished here. I think we will make a short trip, with the idea that if by any chance you are in London in the fall we can all foregather there for a general conclave. The Baron seems to want to have a talk with me on various matters, and I want to talk with the Board about some personal matters, as you know, and therefore it seems expedient for me to make a trip at this time.

Palmer writes me that he and his wife are going down to make you a visit. If he is there when this letter reaches you I wish you would give him and his wife my very kindest regards and wish them a happy trip, which I know they will have if they are under your wing. Ann and I so often talk of the wonderfully happy visit we had with you all down there, and I have it in my mind the thought that within the next couple of years we four should take an expedition to Asuncion and Pinasce.

I wish we might be more encouraged about the tonnage of extract to be sold this year in this market, but, knowing how much has been bought in 1934 which will have to be consumed, we feel that the tonnage sold this year will be very much less, a total amount for ourselves of probably 15,000 tons, and probably 10,000 tons for International.

We have had no serious reactions against the prices under the selling agreement, except that a few chronic kickers are saying that they will use less Quebracho and more miscellaneous materials, which we do not take any stock in, because the price today of Quebracho is a very reasonable one and it compares very favorably with other tanning materials. As soon as they get accustomed to the price and know it is stable they will buy their regular needs automatically and be happy.