833.5151/328
The Minister in Uruguay (Lay) to the Secretary of State
[Received July 29.]
Sir: I have the honor to report that in presenting personally the letter22 from the President of the United States to the President of Uruguay, transmitted in Department’s instruction No. 335 of May 17, 1935,22 the prospects for early negotiations of a trade agreement23 between the United States and Uruguay arose. I told President Terra that there seemed to be good reasons to expect that before very long negotiations will be started but that I thought the prospects of success would be improved if exchange quotas to importers of American goods could be immediately increased on a more equitable basis. President Terra expressed the belief that these adjustments might be made when preliminary discussions are actually started. I told him that I thought that a more favorable ambiente would be created if more equitable treatment toward our commerce in respect to controlled exchange could be granted previous to starting preliminary discussions on a trade agreement but he made no comment upon this observation.
I believe that, as a result of this conversation with the President, more favorable consideration will be given by the Exchange Control Commission to requests for increases in controlled exchange by importers of American goods.
Respectfully yours,