some of which were facing more severe fuel shortages than was Argentina. Storni resigned after this rejection.
[29]
The United States took further measures to increase pressure on Argentina. All Argentine companies suspected of having ties with the Axis powers were blacklisted, and the supply of newsprint was limited to pro-allied newspapers. There were also boycotts. American exports of electronic appliances, chemical substances and oil production infrastructure were halted. The properties of forty-four Argentine companies were seized, and scheduled loans were halted. Hull wanted to weaken the Argentine government, or force its resignation. Torn between diplomatic and economic pressure as opposed to an open declaration of war against Argentina, he opted for the former way, to avoid disrupting the supply of food to Britain. Nevertheless, he also saw the situation as a chance for the United States to have a greater influence over Argentina than Britain.
[30]
The United States also threatened to accuse Argentina of being involved with the coup of
Gualberto Villarroel in Bolivia, and a plot to receive weapons from Germany, after the allied refusal, to face the possible threat of either the United States itself or Brazil acting on their behalf. However, it would be unlikely that Germany would provide such weapons, given their fragile situation in 1944. Ramírez called a new meeting of the GOU, and it was agreed to break diplomatic relations with the Axis powers (albeit without yet a declaration of war) on January 26, 1944.
[3]
The break in relations generated unrest within the military, and Ramírez considered removing the influential Farrell and Perón from the government. However, their faction discovered Ramírez's plan. They broke up the GOU, to avoid letting the military loyal to Ramírez know they were aware of his plot, and then initiated a coup against him. Edelmiro Julián Farrell became then the new president of Argentina, on February 24.
[31]
The United States denied recognition to Farrell, as he would keep the neutralist policy. Farrell confirmed it on March 2, and the United States broke relations with Argentina two days later.
Winston Churchill complained about the harsh policy of the United States against Argentina, pointing out that Argentine supplies were vital to the British, and that by removing their diplomatic presence from the country they would even force Argentina to seek German protection. British diplomacy sought to guarantee the supply of Argentine food by signing a treaty covering it, while US diplomatic policy sought to prevent such a treaty. Hull ordered the confiscation of Argentine goods, cessation of foreign trade with her, avoidance of any of US ships landing at Argentine ports, and he denounced Argentina as the "nazi headquarters in the occidental hemisphere".
[32]
By this time, the United States considered the option of supporting Brazil in an attack against Argentina, rather than attacking Argentina themselves. The Brazilian ambassador in Washington pointed out that Buenos Aires could be completely destroyed by the Brazilian air force. This would have allowed Argentina to be dominated without the open intervention of the United States, who would support Brazil by providing ships and bombs.
[33]