611.3331/276: Telegram

The Secretary of State to the Chargé in Uruguay (Dwyre)

65. Your telegram no. 87, October 19, 5 p.m. You should inform the Foreign Minister that our Embassy at Buenos Aires, assisted by experts sent from here, will conduct the negotiations with Argentina. Since, in those circumstances, it is the desire of the Uruguayan officials that our negotiations with them take place in Montevideo, they will be conducted through the Legation and we will arrange to have the experts we are sending to Buenos Aires consult with and assist the Legation as need arises.

To avoid loss of time, you should begin at once discussions in regard to the general provisions of the proposed agreement, on the basis of the draft attached to this Government’s memorandum of June 28, instruction no. 152 of that date. Instructions regarding the release of concessions will be sent you later.

You should call upon William A. Fowler, Assistant Chief of the Division of Trade Agreements, who is now proceeding to Buenos Aires on the S. S. Uruguay, to assist you in these discussions to the extent permitted by the trade-agreement work in Buenos Aires.

We are instructing the Embassy at Buenos Aires to send you comments on the general provisions, a copy of which you should transmit to the Uruguayan officials. These comments, which outline the purposes intended to be accomplished by the various Articles of the general [Page 801] provisions, should be helpful in your discussions. For additional comments in regard to the purpose and application of the Articles on quantitative restrictions, Articles VII and VIII, and the Article on exchange, Article X, which are of particular importance in the case of Uruguay, you should refer to the pertinent parts of the above-mentioned memorandum of June 28. Report fully to the Department regarding these discussions and request such telegraphic instructions as you think necessary in regard to difficult points encountered.

The Embassy at Buenos Aires will also send you a draft Article X relative to exchange. You should inform the Uruguayan officials that it is desired that this draft Article be substituted for the Article of the same number included in the general provisions enclosed with the memorandum of June 28. Although the new draft is substantially the same as the old, it is briefer and for that reason is considered preferable.

Hull