833.5151/465: Telegram
The Chargé in Uruguay (Reed) to the Secretary of State
[Received 3:45 p.m.]
12. Department’s 5, January 29, noon. I saw the Minister of Foreign Affairs today at the weekly audience and stated that I had come to see him again in accordance with telegraphic instructions from my Government to inform him of the growing concern which the discriminatory policy of the Uruguayan Government was causing in the United States and the increasing damage which it was doing to Uruguayan-American trade. I then referred to a United Press despatch dated Washington, February 1, referring to the Argentine decree reducing the surcharge on free exchange and stating that a semi-official source in Washington had stated that Uruguay’s recent measures impeded the announcement of the negotiations contemplated with Argentina, et cetera. The Minister said that he had seen this despatch but added that he understood Richling was bringing the draft of a commercial treaty with Uruguay. However, he immediately continued that the problem was on the point of being settled in accordance with the desires of the United States Government and that he and the Minister of Finance had had a conference with President Terra who after considering the balance of payments had decided that the trade balance was probably not unduly unfavorable, the debt service being responsible for the heavy adverse balance of payments. The Minister of Foreign Affairs further informed me that the President holds that lending countries ought not to be penalized but favored and that the President had given instructions to the Minister of Finance to take measures to permit the resumption of importing from the United States. The Minister of Foreign Affairs added that I could inform my Government in this sense.