611.3331/158
Memorandum of Conversation, by Mr. James C. Sappington of the Division of Trade Agreements
| Participants: | Mr. César Gorri, Chargé d’ Affaires of Uruguay |
| Mr. Sayre | |
| Mr. Daniels | |
| Mr. Darlington24 | |
| Mr. Sappington |
Mr. Gorri stated that he had been authorized to initiate trade-agreement conversations on behalf of the Uruguayan Government. He referred to the advantageous exchange treatment accorded American trade by Uruguay in 1937, as evidence of Uruguay’s desire for a trade agreement with the United States, and indicated that the disadvantageous exchange treatment accorded American trade by Uruguay in 1938, was due to the adverse balance of trade with the United States and the attitude of other countries with which Uruguay has existing [Page 905] agreements. In the latter connection Mr. Gorri stated that such countries (Britain, Germany, etc.) were informed as to the amount of exchange created by their purchases of Uruguayan products and insisted that such exchange be used by Uruguay to purchase goods from them. Mr. Gorri indicated that Uruguay wished an agreement with the United States which would improve the balance of payments between the two countries.
Mr. Gorri was advised that this Government would be happy to explore with the Government of Uruguay the possibilities of negotiating a trade agreement. The purpose of the trade-agreements program and its bearing upon world peace were outlined to Mr. Gorri. The reduction of restrictive barriers to world trade as contemplated by the program was stressed and, in this connection, Mr. Gorri was told that exchange restrictions were among the most difficult with which we had to contend. He was informed that the bilateral and most-favored-nation systems were diametrically opposed and that we could not compromise in principle in this regard; however, we would give careful consideration to all aspects of the problem as presented by Uruguay and wished the Uruguayan Government to give full consideration to all views advanced by this Government. Mr. Gorri stated his belief that if the United States granted concessions on Uruguayan products, such as meat products, flaxseed, etc., the exchange difficulty would disappear.
It was decided that Mr. Gorri would come to the Department on Tuesday, March 29, to begin technical discussions in an endeavor to ascertain whether a mutually satisfactory basis for trade-agreement negotiations could be developed. It was agreed that these technical discussions would not involve any commitments, but would afford an opportunity for a frank exchange of views; and that they would be considered confidential.
- Charles F. Darlington, Jr., Assistant Chief, Division of Trade Agreements.↩