611.3331/134
Memorandum of Conversation, by the Chief of the Division of the American Republics (Duggan)
I saw the Uruguayan Minister1 at luncheon this noon. He referred to his recent conversation with Mr. Welles2 and asked me if I could give him any advice as to whether he should leave on his vacation at this time.
I informed the Minister that Mr. Welles had spoken to me about the Minister’s conversation with him and that thereafter I had talked with several persons in the Department about the Uruguayan trade agreement situation. I said that as I envisaged developments, the first would probably be an exchange of views by which each government might assure itself that there existed a basis for an agreement; the second would be the preliminary announcement; the third, the formal announcement; and the fourth, the negotiations, followed by signature of the agreement itself. I said that before the Minister left, which he now informs me will be on January 29, the Department would be in a position to discuss with him the bases of an agreement. The Minister asked me what the Department probably would have in mind and I said that the Department would like to have clear assurances in advance with regard to most-favored-nation treatment in connection with exchange3 and quotas and, of course, in tariff matters, and that there might be some other points to be clarified. The Minister stated that the clarification of these might require consultation with his Government and that this might take some little time. I stated that if these preliminary exploratory conversations were not completed prior to his departure, which he himself stated did not seem likely, that they could be carried to conclusion with our Legation in Montevideo—that the Legation would of course welcome his cooperation at the other end.
[Page 896]I then said that if as a result of these conversations it was evident that the basis of an agreement existed, which I was sure would be the case, then the preliminary announcement would be issued. I felt that my Government would be in a position to proceed with the negotiations as soon as the Uruguayan Government was in a position to do so. The Minister said that he did not know how much preliminary work his Government had already done and that it might be several weeks before he was in a situation actively to negotiate.
The Minister gave me to understand that he was extremely anxious to carry on the negotiations himself here in Washington and that he would be assisted merely by some technical advisers, but not by another negotiator of equal rank.
The Minister stated that he was prepared to return to the United States at such time as the two governments were ready to undertake the actual negotiations. He also stated that, should it be decided that his presence would be helpful, a word dropped to him by Mr. Dawson4 to this effect would be sufficient to start him back on the next boat. He said that all he wanted was two or three weeks in Uruguay at this time.
It was left that unless the Minister heard from the Department by early tomorrow morning, he will go to New York tomorrow to pay for his steamship passage on the Rex, which he indicated would not be refunded in case he had to change his plans. I said that I would consult at once, but unless he heard from me during the afternoon he might assume that the broad lines of the arrangement discussed between us were satisfactory to this Department.