611.3331/196
Memorandum of Conversation, by Mr. James C. Sappington of the Division of Trade Agreements
| Participants: | Mr. Richling, the Uruguayan Minister |
| Mr. Sayre | |
| Mr. Duggan | |
| Mr. Sappington |
Mr. Sayre referred to previous informal preliminary conversations relative to a possible trade agreement with Uruguay and to the fact, as then discussed, that the similarity between Uruguay’s and Argentina’s export trade with the United States rendered desirable simultaneous negotiations with both countries. Mr. Richling concurred and indicated his belief that simultaneous negotiations would also be desired by his Government.
Mr. Sayre then informed the Minister that decision had been reached that negotiations could be undertaken with Australia, Argentina and Uruguay provided substantial agreement could be reached [Page 910] with those countries on the essential provisions of a trade agreement and the concessions to be contained therein before July 7 by which date, if such agreement were reached, public announcement of intention to negotiate would be issued. It was further explained that the agreements would have to be signed and published by early September, otherwise public announcement that negotiations had terminated would have to be made as it was impossible to continue active negotiations later into the coming fall; for this reason substantial agreement as to the essentials of the trade agreement would be necessary before July 7 as this Government did not wish to issue public notice in regard to negotiations unless there was a strong probability that they could be concluded by early September.
Mr. Sayre stressed the strictly confidential nature of this Government’s proposal (as contained in the attached memorandum29 which was handed Mr. Richling), and stated that of course the indicated possible concessions to Uruguay could not be taken as a firm commitment in view of legal requirements with respect to hearings in this country. Mr. Richling was also informed that, as stated in the memorandum, in the event agreement could not be reached with Argentina in order to permit a public announcement of intention to negotiate a trade agreement with that country by July 7, the question of issuing an announcement by that date in regard to Uruguay would have to be reconsidered.
Mr. Sayre referred to a possible plan, advanced by Mr. Richling in a conversation with Mr. Welles early in May, to effect the clearance of United States merchandise which had accumulated in Uruguayan customs houses because of the non-allocation of exchange by the Uruguayan Government for the payment of such merchandise. This plan contemplated a loan by the Export-Import Bank to the Uruguayan Government to be secured by earmarking a part of the Uruguay gold reserve and to be used for the payment for the accumulated merchandise. Mr. Richling stated that he did not know what his Government would think of this plan. Mr. Sayre said that this Government preferred the exchange formula embodied in the attached memorandum as a more desirable method of furthering the expansion of trade.
- Infra. ↩