611.3331/263: Telegram
The Chargé in Uruguay (Dwyre) to the Secretary of State
[Received 7:10 p.m.]
66. Referring to the Legation’s telegram No. 59, September 1, 5 p.m.8 In conversation with the Minister of Foreign Affairs yesterday and today he stated that the Bank of the Republic has made a partial reply to the memorandum transmitted by the Legation to the Foreign Office,9 its examination of the question being limited to the provisions governing exchange control and the exchange policy, not, however, attempting to go into the matter of tariffs. The Minister stated that the bank officials have expressed themselves as being keenly interested at this particular time in the negotiation of a commercial treaty with the United States. The Minister pointed out that the negotiation of an agreement between Argentina and the United States and the failure to negotiate a similar agreement between Uruguay and the United States would be extremely disadvantageous for Uruguay [Page 792] since Uruguay’s export products to the United States are virtually the same as those exported by Argentina. The Minister then said that his Government desires to grant all the necessary facilities to enable the negotiations to be conducted simultaneously (paralelamente) with those of Argentina and for that reason he desires to be informed if possible at the earliest possible moment of the point to which those negotiations have progressed to date. He mentioned also that the present international situation serves to make more feasible the negotiations of such a treaty at this particular time. I gained the unmistakable impression that Dr. Guani is not in entire sympathy with the trade policy which Uruguay has been pursuing during the past years and would be glad to bring about a change.
In addition the Minister expressed the wish that the tone of the Legation’s telegram be decidedly optimistic toward the ultimate negotiation of a trade agreement, as he is very desirous that such a treaty be consummated. He remarked that the questions of tariffs and of exchange are highly technical and should be discussed by technical experts from each country and that if the United States desired to send experts here it would be gratifying to him. He said that Uruguay has the same obstacles confronting it in the way of certain bilateral treaties as has Argentina and should be equally as able to negotiate a treaty at this time. He further stated that his Government is ready to proceed toward a formal announcement of intention to negotiate a treaty but with the understanding that prior consultations shall take place between the two Governments to enable each party to formulate a previous declaration or basis of approach, as is understood to have been done in the case of Argentina–United States negotiations.
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