833.5151/461: Telegram
The Chargé in Uruguay (Reed) to the Secretary of State
[Received 4:35 p.m.]
7. My No. 5, January 15, 10 a.m. I obtained another interview with the Minister of Finance late yesterday when he showed me a statement [Page 927] of the Uruguayan balance of payments with the United States at end of 1937 unfavorable to Uruguay by $6,000,000 of which over 4,000,000 was debt service. He declared that this unfavorable balance had been paid for from the favorable balances of other countries and that as they were now demanding more exchange he did not see how exchange for American imports could be obtained. He assured me, however, that he had not finished considering the matter and that he still hoped to evolve a solution which would permit the resumption of importing from the United States.
I have today seen the Minister for Foreign Affairs and complied with the Department’s telegraphic instructions No. 3 of January 14, 4 p.m. He said that he considered the recent measures too severe and stated that a decree must be issued permitting imports from the United States. He added that he would inform the Minister of Finance of the interview which I confirmed by aide-mémoire.47
Uruguayan trade statistics for many years past show that imports from Great Britain were usually less than one-half the value of exports to that country. Uruguay’s balance of payments with Great Britain in recent years is unknown but it is believed to be favorable. The Minister of Finance indicated to me that the Uruguayan quota policy was the result of pressure from Great Britain and other nations and hinted that representations by the United States Government to the British Government would be welcomed by Uruguay if they should liberate for imports of American goods part of Uruguay’s favorable balance with Great Britain. Moving picture films continue to enter receiving special consideration.