I think that Jorge Borges liked Chesterton's stories more, that Conan Doyle's stories. However I found two mentions on Sherlock Holmes in Borges texts too.
By the way, Boris Dubin is one of Russian translators of Borges stories and he is not less famous than his Argentine colleague thanks to those stories.
Sorry for the translated, but I have translated the translated texts from Russian into English. :))) I hope English or American colleages-sherlockians will published those excerpts in good literary translations.
"Nights of Senior Golyadkin" (from The Six Problem for Don Parody, 1942)
In Russian: "Иногда я становлюсь похожим на Шерлока Холмса, вот и теперь я отвлек внимание охранника, подсунув ему интересную парагвайскую монету, и постарался -- прямо как собака Баскервилей -- услышать и увидеть все, что происходило на территории нашего вагона".
"Sometimes I am similar to Sherlock Holmes: right now I smartly have distracted guard's attention, when I gave interesting Paraguayan coin, and I had try to do -- like hound of the Baskervilles -- to eavesdropping and to see everything that was happing in the territory of our carriage".
"Your Kindness, Senior Cervantes" (1968)
"I haven't confidence that I can to find even one book, even one successful book, in which whether we would accept the plot, but whether we wouldn't accept characters. In my opinion, that is not happens. In my opinion, so that a book was accept at completely we must to accept a main character of its. You may to think that you became keen on adventures, though in reality you become keen on the fictional character much more. For example our one big friend -- sorry, I didn't mention on him until now -- for example Mr. Sherlock Holmes. I don't know whether we believe in hound of the Baskervilles in reality. At least I don't believe in her; whereas I believe in Sherlock Holmes, believe in doctor Watson, believe in their friendship".
By the way, I have funny theory on "The Tlon, Ukbar, Orbis Tercius" -- one of stories by Borges. Thanks to the Method of Deduction I found that Ural (region in that I live) is mysterious land Ukbar (or almost IS), on which Borges write. (Although someone -- in particularly B. Casares -- asserted that Ukbar is region of Iraq.) Jorge Borges found this Ukbar in "false" "The Anglo-American Cyclopedia" between "Uppsala" and "Ural-Altai's languages". I painstakingly studied my bible "The Soviet Cyclopedias Dictionary" (Moscow, 1980) and there I didn't found "Ural-Altai's languages" unlike "Uppsala". Really, I found merely "Ural's languages". And the Land named "Ukbar" is lack, but the Land named "Ural" is present between "Ural's languages" and "Uppsala".
"Ural, mountainous land on the Europe-Asia border; is extended almost by the meridian from coasts of Karsk Sea to town Orsk (about 2000 km)". I shall add more... Ural is most old and low mountains of Planet.
By the way, Ekaterinburg (in that I live) is near to the Europe-Asia border (about 15-20 km). At 18th November 2002 artist Leonid Lugovyh and me arranged the public performance in genre "conceptional art": we merely "have carried" the Europe-Asia border from the suburb to centre of Ekaterinburg (to Plotinka Park). It was nearly sensation! :))) ...TV-reports, publications, interview...
The thing is that before regional politics (including regional governor Edward Rossel) had active discussion regarding the possible transfer of the Europe-Asia border in Ekaterinburg. It can be profitably for City reputation! "Ekaterinburg -- Continents is meeting there!" A fantastic idea!
They have active discussion, but we made it. I still didn't say that this performance is part my art project "Игра в борхес" (Borges Game / or Game in Borges). After architect Pavel Lozkin and me found the Bermuda's Triangle in northern part of Ekaterinburg. The Ural Bermuda's Triangle is not sea, but is railways. The public performance was realized at 1st April 2003. :)))
Thanks to Jorge Luis Borges! He inspired to a large extent to my companions and me.
I have fanny theory on the connection between Sherlock Holmes and Tolkien. :)))