File No. 862.85/222
The Secretary of State to the Minister in Uruguay ( Jeffery)
Your November 28, 8 p.m.1 Department knows nothing about financial standing or reliability of either of the firms mentioned or their agents.
You may inform the Uruguayan Government that United States Government feels that more satisfactory results can be obtained if the negotiations now in progress between the Department and the Uruguayan Legation here, for the charter of the ex-German vessels in Uruguayan ports, are unhampered by the consideration of proposals of private parties at this time. Bush answer.
The following proposal is being made by the Government of the United States to Uruguay through its Legation here:
The United States to undertake repairs necessary to render the vessels seaworthy; bearing the cost of repairs in the first instance, but deducting this cost from the charter hire as it shall become payable for the use of the vessels. The vessels to be chartered to the United States by a “bare boat” form of charter party, for the duration of the war at an agreed fair price for vessels of this size, speed, and general character. Charter hire to begin when the vessels are rendered seaworthy after repair. The marine risk on the vessels [Page 379] will be assumed by the Uruguayan Government; war-risk insurance oh the account of the United States. The vessels will be used for the mutual benefit of the two countries party to the agreement; but subject to the right of the United States to employ the vessels in vital war trades. The request of the Uruguayan Government for fuel oil to meet its national requirements is now being discussed in conference; and it is hoped that as the tankers now under construction come off the ways and are ready for service, provision can be made to take care of the essential requirements of Uruguay for fuel oil.
- Not printed.↩