Is there an audio file of this interview? I'd prefer listening to the original (in the background).
My read is that most likely, it was recorded on an old school reel-to-reel tape recorder. It's entirely possible that the tapes are still sitting on a shelf somewhere in Argentina, though the chances of actually tracking them down are pretty low. I worked with some reel-to-reel tapes that Alan Ginsberg made (now held at Stanford) in the mid-60s (including one where he is talking to Bob Dylan!) and they held up pretty well. Had to use audio editing software to remove tape hiss, but they were not as badly preserved as I expected.
Anyway, I uploaded the Simon book chapter at https://gwern.net/doc/borges/1996-simon-2.pdf
https://borgestodoelanio.blogspot.com/2017/05/jorge-luis-bor...