833.51/715
The President of the Foreign Bondholders Protective Council ( Clark ) to the Chief of the Division of Latin American Affairs ( Duggan )
Dear Mr. Duggan: I enclose herewith a copy of the cable4 which I sent today to the Minister of Finance of Montevideo regarding the Uruguayan bonds in default.
When Mr. Reed of the Legation in Montevideo was recently in New York he was good enough to call at the Council and he informed us that apparently Mr. Cosio misinterpreted the Council’s views when he returned to Montevideo last Autumn. Mr. Cosio apparently had been stating that the Council was perfectly happy with the 3½% payment made by Uruguay whereas Mr. Cosio was definitely advised that the Council was willing to let the matter continue as it was for three or four months from the end of September 1935 in view of Mr. Cosio’s statement that Uruguay was about to devalue its currency. My cable is designed to clear up that misunderstanding and to induce the Uruguayans to discuss this matter with the Council without further delay. Any help which the Legation may be good enough to give to that end will, needless to say, be highly appreciated by us.
Faithfully yours,
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