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

No. 277

Sir: Referring to my despatch No. 269 of June 26th and previous despatches with reference to the practice of Uruguayan Customs in levying on certain merchandise customs duties lower than have been levied on like merchandise from the United States, I have the honor to enclose herewith copy and translation of a note dated June 29, 1936 from the Foreign Office, quoting a letter from the Bank of the Republic in which that institution, to which my representations were referred, still fails to satisfy the Legation’s complaint that many articles of American origin actually pay higher customs duties than [Page 949] those collected on like articles from other countries resulting from the practice of converting that portion of Uruguayan customs duties payable in gold at differential rates according to the origin and nature of the importation.

Respectfully yours,

Julius G. Lay

The Uruguayan Minister for Foreign Affairs (Espalier) to the American Minister (Lay)

Mr. Minister: Referring to the first portion of Your Excellency’s Note No. 53, of April 27 last,16 I have the honor to quote you the report submitted by the Bank of the Republic, to which the matter had been referred:

“Within the limits permitting import quotas fixed for the different countries, the Bank determines which shall be the merchandise that may be included in and benefited by such quotas, taking into preferential consideration for such discrimination the items most indispensable to meet the present needs of the country. In accordance with this principle, the Bank has included in the quota for the present quarter granted to the United States all classes of goods except automobiles, spun goods, crepe rubber, radios, electrical appliances, electrical refrigerators, and domestic electrical appliances, without prejudice to the fact that as the availability of exchange for that country increases, as is presumed it will, in the new quotas to be fixed provision will be made for other articles which for the time being have been excluded, it being very probable that in the very near future the importation of all classes of goods without any limitation whatever may be authorized.”

I reiterate [etc.]

For the Minister:
Luis Guillot

Director General
  1. See footnote 13, p. 947.