611.3331/131a
The Department of State to the Uruguayan Legation 5
Memorandum
The Government of the United States, in view of the interest which it understands the Government of Uruguay has had in possible trade negotiations with the United States, and having considered the desirability of a trade agreement between the United States and Uruguay, would be happy to join with the Government of Uruguay in exploring the possibilities of such an agreement.
As the Government of Uruguay is aware, the trade agreements entered into by the United States, under the Trade Agreements Act,6 are designed to remove excessive barriers to international trade and are negotiated on the basis of the unconditional most-favored-nation principle.
[Page 897]Consequently, before this Government would be prepared to make any public announcement (as is done in accordance with customary procedure) regarding the initiation of trade-agreement negotiations, it would expect a definite assurance that the Uruguayan Government would be prepared to negotiate upon the basis of the unconditional most-favored-nation principle applied to all forms of trade and payments control.
The acceptance of the above mentioned basis for negotiations would mean that prior to the commencement of negotiations all American products exported to Uruguay would be permitted entry into Uruguay free of any discrimination.
January 24, 1938.