833.51/598: Telegram
The Chargé in Uruguay (Dominion) to the Secretary of State
[Received 7:06 p.m.]
50. Referring to Department’s telegram No. 32, July 19, 1 p.m. and my telegram No. 49, July 20, 5 p.m.
I have discussed again with the Minister for Foreign Affairs on Saturday and today the question of prevention of possible discrimination against American interests in allocation of foreign exchange. He believes no discrimination will exist as long as the same percentage, [Page 656] based on the value of country’s imports of Uruguayan products, is provided respectively to each importing country and suggests that increase in American purchases of Uruguayan products, principally meat, will provide increasing amounts of dollar exchange. He also emphasized the difficult economic position in which Uruguay is now placed as a result of scarcity of foreign exchange due to the insufficient quantity of its exports. I have called his attention to the inevitable conclusion which will be reached in the United States that discrimination against American interests exists if sufficient dollar exchange to meet American requirements of trade and of investment services is not provided while British investors and exporters continue securing all sterling exchange they need. He informed me the British have complained of discrimination against them because the percentage allotted to American interests has been higher in the past than that given to British. However, Minister stated definitely today that equal treatment would be extended and that he would be able to make more definite statements when British negotiations had progressed further. A paraphrase of this telegram is being provided to the Minister for Foreign Affairs to avoid possibility of misunderstanding.