833.51/706

The Minister in Uruguay ( Lay ) to the Secretary of State

No. 255

Sir: Referring to the Department’s Instruction No. 74 of May 14th last, I have the honor to report that I have asked Dr. Ignacio Reyes Molné, the Acting Minister of Finance, whether his Government would give consideration to either sending someone else than Dr. Charlone or authorizing some other official in the United States to deal with the Foreign Bondholders Protective Council, Inc. regarding Uruguay’s dollar indebtedness. He said he would give this suggestion his careful consideration but, confidentially, it has been apparent since Dr. Charlone first mentioned to me his desire to effect some adjustment of the dollar debt, that he is anxious, for political reasons, to carry on [Page 939] any negotiations directly himself and not through any Government representative.

I reminded Dr. Reyes Molné that Señor Jorge West, the President of the Bank of the Republic, was leaving for the United States on June 20th (See my despatches No. 242 of May 22 and No. 247 of May 29, 19363) to attend to some official business in New York for the Government and enquired whether he could not be authorized to deal with the Council. He replied that he saw no objection to Señor West discussing in New York the question of debts with the Council and said that he would talk to Mr. West about doing so. Dr. Molné did not, however, intimate that Señor West would be authorized to deal with the Council.

In a previous conversation with Dr. Reyes Molné, he observed that since it seemed most unlikely that Dr. Charlone could go to the United States en route from Europe, it would be best for a representative of the bondholders to come here upon Dr. Charlone’s return from Europe. I discouraged this idea at the time because there was some chance of the President changing his mind about Dr. Charlone going to the United States and it did not seem practicable, but possibly the Council would, under the circumstances, deem it expedient to send a representative here to deal with Dr. Charlone.

Respectfully yours,

Julius G. Lay
  1. Neither printed.