File No. 862.85/236a
The Secretary of State to the Minister in Uruguay ( Jeffery)
In order to expedite negotiations and that the ex-German ships in Uruguay may be placed in service for mutual benefit of Uruguay and United States as soon as possible it has been decided to carry on negotiations both with Uruguayan Legation here and at the same time through you and Uruguayan Government in Montevideo. You are instructed to place before the Uruguayan Government the proposals quoted in Department’s telegram of December 1, 6 p.m.1 You will obtain permission, if possible, from the Uruguayan Government, for Mr. Charles Crocker, now in Montevideo, to superintend the survey of these vessels, and ask Mr. Crocker to undertake this work and make a report.
The Department is informed that bids on these vessels are still being invited and received by the Uruguayan Consul General in New York. The Uruguayan Minister informed the Department on December 8 that the Government of Uruguay is obliged to offer these ships for charter in the open market on account of recent legislation. You are instructed to obtain from the Government of Uruguay confirmation of the statement made by the Uruguayan Minister at Washington. In requesting this information you may state that the [Page 385] Government of the United States desires to be perfectly clear on this point and to avoid all misunderstanding.
If the law makes acquisition by United States Government technically impossible, you are to inform Uruguayan Government that the United States Emergency Fleet Corporation can charter these ships, as it is a private and not a government organization.
In bringing this matter to the attention of the Uruguayan Government you are instructed to say that in view of the earnest consideration which this Government is giving to means for supplying oil for use in Uruguay, the Uruguayan Government should consider all matters in connection with the negotiations for the ships in the broadest possible light.
In view of the understanding with the British Embassy in Washington that the British Government will cooperate with the United States in the matter re German ships, you are instructed to acquaint your British colleague of the above instruction and request his support in representations made by you.