833.5151/476: Telegram
The Minister in Uruguay ( Dawson ) to the Secretary of State
[Received February 25—6:35 p.m.]
19. I saw this morning the Ministers of Foreign Affairs and Finance for the purpose of discussing the trade situation and renewing representations along the lines of the Department’s telegrams and particularly its telegram No. 5 of January 29, noon. While both expressed their desire of finding a solution neither held out any concrete hope for immediate or early action. Minister of Finance stated that Uruguay has no exchange which it is free to apply to American imports and that to use the Bank of the Republic’s reserve supply for this purpose would seriously compromise future. While promising to continue to seek a solution he said that a really adequate solution would require the collaboration of both countries with a view to placing their commercial interchange on a mutually satisfactory basis. While I was at the Foreign Office Richling called at the Legation and told Reed that he had just explained to President Terra that if Uruguay were to negotiate a trade agreement with the United States it must first remove all discrimination against American trade. Richling gave Reed to understand that the President is very anxious to negotiate a trade agreement and will take immediate steps to remove all discriminations. I am rather apprehensive lest Richling may perhaps have conveyed to his Government the impression that negotiations are nearer than is actually the case. Desirous as we are of seeing discrimination removed we should not want the Uruguayan Government to proceed under any misapprehension. In the circumstances the Department may wish to inform me as to present prospects and authorize me in my discretion to clear up any misunderstanding which I may find to exist.