File No. 862.85/321

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


Your February 22, 6 p.m., suggests desire of Uruguayan Government that four ships be allocated to direct trade between United States and Uruguay. Please explain to Minister of Foreign Affairs that in consultation with British authorities above allocation has been agreed upon, giving Uruguay three ships in direct trade and two with possible third in triangular trade Uruguay to Europe via United States.

The following letter was sent by this Department to the Uruguayan Minister in Washington on the 23d instant. You may read it to the Minister for Foreign Affairs:

With a full text and translation of the law of Uruguay now at hand, the Emergency Fleet Corporation desires to submit for the consideration of the Uruguayan Congress, certain amplifications and modifications of its recent bid for the use of the eight German steamers now interned in the port of Montevideo. The modifications, [Page 670] which are chiefly concerned with the trades in which these vessels shall be employed, are as follows:

Three vessels to be nominated by the Emergency Fleet Corporation shall engage continuously in trade between the United States and Uruguay; three other vessels shall engage continuously in trade between Uruguay and England and/or French Atlantic ports and two vessels shall engage continuously in trade between Uruguay and England and/or French Atlantic ports via United States Atlantic ports. These vessels shall give priority in transportation to Uruguayan licensed imports and exports. Particularly, they shall carry coal to Uruguay,—the Emergency Fleet Corporation either supplying or guaranteeing transportation for Uruguay’s stated need of 8,000 tons per month.

The Emergency Fleet Corporation have the right, upon giving proper notice, to nominate other vessels of equal or greater deadweight cargo carrying capacity to take the place of any of the eight vessels to which this offer applies. The substituted vessel shall thereafter be bound according to the trade obligations of the vessel whose place she takes, as these obligations are outlined above. Thereupon the Emergency Fleet Corporation shall have the right to use the Uruguayan vessel or vessels in unrestricted trades.

In view of the provision for substitution herein provided, it is urged that the Uruguayan Government agree to charter these vessels on net form, the obligation to provide crews resting with the charterers, and all expenses on charterers’ account. For this form of charter, a rate of 35 shillings per deadweight ton per month is herewith offered, in lieu of the rate of 33 shillings previously tendered.

The Emergency Fleet Corporation shall have the right to sub-charter any of the vessels covered by this proposal to a shipping company nominated by the British Government.

It is respectfully urged that these provisions, together with the other provisions of the bid previously submitted by the Fleet Corporation, be accepted in principle by the Uruguayan Government, so that a detailed agreement in accordance with these principles may be drawn and submitted to the Uruguayan Congress for its approval.