611.3331/154

The Minister in Uruguay (Dawson) to the Secretary of State

No. 66

Sir: I have the honor to enclose the Spanish text and an English translation of a note dated March 15 and received today in which the Uruguayan Minister for Foreign Affairs discusses the difficulties affecting American trade in Uruguay. In his introductory paragraph, Dr. Espalter refers to the representations of the Legation but mentions no specific note or aide-mémoire. His note is perhaps to be considered as a reply to the aide-mémoire which I handed him on February 25 (text enclosed in my despatch No. 28 of February 25).60

It will be observed that the Minister disclaims any intention on the part of Uruguay to discriminate against the United States, says that restrictions are applied uniformly to all foreign countries, and asserts that “it is a question of the carrying out of internal laws and regulations at present in effect, and not of discriminatory treatment of the United States.” The closing paragraph of the note deals with the accumulation of American merchandise now in the Montevideo customs, a situation for which the Minister holds out hope of an early remedy.

While I doubt the advisability of engaging in any extended argument, I believe that it would be well for the Legation to reply to the Foreign Office along the lines of the draft which I enclose for the Department’s consideration. If the Department approves the text and desires that I address the note to Dr. Espalter, I trust that it will instruct me to this effect as promptly as possible either by cable or by airmail.

Respectfully yours,

William Dawson
[Enclosure 1—Translation]

The Uruguayan Minister for Foreign Affairs (Espalter) to the American Minister (Dawson)

Mr. Minister: With reference to the question raised by the Legation, relating to the situation of imports from the United States into Uruguay as a consequence of the measures applied by the Bank of the Republic governing the introduction into this market of merchandise originating in countries having no exchange, I have the honor to advise [Page 943] Your Excellency that the Foreign Office has considered the matter with the utmost good will.

I must point out that the measures taken by the Government of Uruguay with respect to imports of merchandise from countries without a quota are not due to any intention to discriminate against imports from the United States, inasmuch as the restrictions at present imposed upon the entry of merchandise are applied uniformly to all States under equal conditions. It is a question of the carrying out of internal laws and regulations at present in effect, and not of discriminatory treatment of the United States.

I take pleasure in letting Your Excellency know that my Government is endeavoring to devise measures necessary to facilitate the clearance of the North American products accumulated in the warehouses of the Montevideo customs, and that it is disposed to consider every initiative tending to give to this matter the most favorable solution. To this end the competent authorities of the country, to whose special attention the matter has been referred, have placed themselves in contact with the commercial circles concerned, and it is hoped that within a short time the importation of the merchandise of the United States now in the customs will be again facilitated.

I avail myself [etc.]

José Espalter
[Enclosure 2]

Draft of Proposed Reply to Note From the Uruguayan Minister for Foreign Affairs

Excellency: I have the honor to refer to Your Excellency’s esteemed note of March 15 regarding the situation affecting imports from the United States into Uruguay which has been brought to the attention of the Foreign Office by this Legation on various occasions.

Your Excellency is good enough to assure me that the Foreign Office has considered the matter with the utmost good will. Your Excellency points out further that the measures taken with respect to imports from countries without a quota are not due to any intention to discriminate against the United States and that the existing restrictions are applied uniformly to all foreign countries under equal conditions. In conclusion, Your Excellency informs me of the interest of the Uruguayan Government in facilitating the early clearance of the American products at present accumulated in the Montevideo customs.

With reference to Your Excellency’s statement that there is no intention to discriminate against the United States and that restrictions are applied uniformly to all countries, I may be permitted to [Page 944] point out that, as Your Excellency is aware, no controlled exchange has been made available for American products for several months and, if I am correctly informed, Montevideo importers are unable to obtain import permits for new orders which they may desire to place in the United States. Under such conditions, American trade labors under disadvantages of the most serious nature and it seems obvious that the system of control at present in effect has resulted in a state of affairs which constitutes in practice a grave discrimination against imports from the United States. The interest of the Uruguayan Government in facilitating the release of the American goods now in the customs is greatly appreciated and, in view of Your Excellency’s assurance that there is no intention to discriminate against American imports, I venture to express the hope that the Uruguayan Government will soon see its way to adopt measures of a nature to remove the difficulties referred to and to permit the resumption of importing from the United States.

I avail myself [etc.]

William Dawson
  1. Not printed; this despatch elaborated on representations reported in telegram No. 19, supra.