File No. 862.85/299a

The Secretary of State to the Chargé in Uruguay ( Wadsworth )


The Emergency Fleet Corporation has filed with the Uruguayan Minister in Washington the following bid for the German boats interned in Uruguay:

Vessels to be chartered either from the Government of Uruguay direct by the Fleet Corporation or from a Uruguayan corporation as the Government of Uruguay shall elect. Delivery of the vessels to be made to a representative of the Fleet Corporation at Montevideo or at port of repair. Re-delivery at Montevideo. Vessels to be chartered to the Fleet Corporation for the period of the war. Two of the vessels to be used in trade between the United States and Uruguay. Use of balance to be unrestricted. Rates of charter to be 41/6d. Uruguayan Government to be responsible for cost of marine [Page 664] insurance, running repairs, stores, provisions, pay of officers and crews, but charterers to be liable for war risks to vessels at valuation of £35 per gross ton. Charterers reserve the right of providing officers and crews. Captains, officers and engineers should be American or British but we would agree to Uruguayan crews on American or British articles so far as reliable Uruguayans are available. Alternative rate of charter to be 33/–all expenses charterers who would provide officers and crews as above. Valuation of vessels for loss by either marine or war risk to be £35 per gross ton. Repairs to be made if the Government of Uruguay shall elect at the cost of the Fleet Corporation. The cost of such repairs, however, to be eventually deducted from the charter hire as payable. As the hire offered is calculated on the basis of current rates of freight it must be reduced correspondingly if there is any reduction required on such rates. If full cargoes are not available in Uruguay, vessels are to have the right to load elsewhere. Right is reserved by the charterers to pay charter hire in New York or Montevideo at their option. It is understood that the above tender is for the following eight vessels: Bahia, Harzburg, Mera, Polynesia, Salatis, Sylvia, Thuringia, and Wiegand.

You are instructed to present to the Government to which you are accredited the above bid, stating that it is a confirmation of a bid already filed by the Emergency Fleet Corporation with the Uruguayan Minister at Washington.

The British Embassy in Washington has stated that the Government of Great Britain will instruct its Minister at Montevideo to support this bid and not to present an identic bid in behalf of the British Government.

You are instructed to present the following note to the Government to which you are accredited:

The Emergency Fleet Corporation has filed with the Uruguayan Minister at Washington a bid looking to the utilization of the German vessels now taken over by the Government of Uruguay. The United States Government has had the opportunity of examining the provisions of this bid and wishes to advise the Uruguayan Government that this bid has the hearty endorsement and approval of the United States Government.

The United States Government trusts that the Uruguayan Government will accept the general terms of the bid submitted by the Emergency Fleet Corporation and that after the various details incident to this bid have been settled that delivery of the boats under the bid will be made to the Emergency Fleet Corporation, either in a Uruguayan port or in this country.

The United States Government requests that the Uruguayan Government advise it when a decision has been reached respecting the bid of the Emergency Fleet Corporation.