611.3331/290
The Minister in Uruguay ( Wilson ) to the Secretary of State
[Received November 9.]
Sir: I have the honor to report hereinafter developments regarding the trade agreement negotiations since my arrival at this post on October 23d:
On October 24 Mr. Dwyre informed the Foreign Minister by note (copy enclosed)18 that the United States Government would be glad, [Page 802] since the negotiations with Argentina were to be held in Buenos Aires, to meet the wishes of the Uruguayan Government and have the Uruguayan negotiations take place in Montevideo. The note expressed the desire that conversations on the general provisions be begun as soon as possible. In handing the note to Dr. Guani, Mr. Dwyre mentioned that we had just received an explanatory memorandum regarding the general provisions, as well as a new and briefer draft of Article X, and that we would make a Spanish translation of the memorandum and draft article and furnish copies to the Foreign Office (English and Spanish texts of the memorandum and Article X were sent to Dr. Guani on October 26).
When I called on Dr. Guani for the first time, on October 25th, I took occasion to discuss the trade agreement at some length. I said that I and the members of my staff were wholly at the disposal of himself and the Uruguayan officials for discussions at any moment on the trade agreement. When we had advanced matters somewhat, and whenever it would be helpful, I was sure that we could have Mr. Fowler and Mr. Allen come over from Buenos Aires. I said that although we were beginning later than the Argentine negotiations, I hoped we might make every effort to advance our work so that the two agreements could be brought into force at about the same time. I then went on to express a personal opinion, about as follows: that I had noted the existence in the United States, and the Minister had undoubtedly noted it as well, of opposition in certain quarters to the type of trade agreement which we hoped to make between the United States and Argentina and Uruguay. It had required an act of courage on the part of the Administration in Washington to announce intention to negotiate these agreements. The Trade Agreements Act expires next June, and it might or might not be renewed; in any case, next year would be a year of general elections in the United States. It seemed to me that here was an opportunity, which might not present itself again, for us to place our trade relations on a proper basis, and we ought to make every effort to take advantage of it and to wind up our negotiations by the first of the year, if at all possible.
Dr. Guani said that he was in full agreement; that he intended to set up an inter-Ministerial committee to work on the problem, and that he hoped to be ready, in two weeks time, to begin conversations on the general provisions.
I also mentioned the unfortunate effect of publicity given to the possibility of concessions on meat products, as reported in my telegram No. 91 of October 25—5 p.m.19
When I was received by President Baldomir on October 27th, I referred to the trade agreement negotiations and spoke on much the [Page 803] same lines as to Dr. Guani. The President seemed interested and expressed his best wishes for the early and successful conclusion of the negotiations.
In calling on the Minister of Finance, Dr. Charlone, on October 28th, I spoke of my hope, for the reasons already mentioned, that we might make rapid progress. He said that he was in full agreement, and that everything which he and his services could do to advance the negotiations, would be done. He asked if Mr. Fowler had arrived in Buenos Aires, and said that he would look forward to seeing him again in Montevideo, as he recalled with pleasure their conversations last January.
I had a further conversation with Dr. Guani on October 28th, when I informed him that I had learned that in the negotiations in Buenos Aires it had been found helpful to set up general committees, composed respectively of representatives of the Embassy and of the competent Argentine Ministries, and subcommittees as well, and I suggested that we might follow the same procedure. Dr. Guani thought this a good idea, and promised again to advise me as soon as he was prepared to begin discussion of the general provisions.
My impression, from such talks as I have had to date, is that the Uruguayan officials probably have not gone very far with their study of the proposed trade agreement. I expect that we shall encounter much delay. It was surprising to find that Dr. Guani was ignorant of the fact that our government can conclude trade agreements which enter into effect without necessity of ratification by the Senate. He expressed interest in our Trade Agreements Act, which he said he had never read, and I at once sent him a copy of the Act. President Baldomir seemed to be under the impression that the trade agreement was practically on the point of being concluded. It is probable that in the Ministry of Finance and the Bank of the Republic more familiarity with the details of the subject will be found. I am told by some well informed people, however, that it is precisely in those quarters that opposition to the agreement exists.
I shall, of course, continue to try in every appropriate way to make progress in this matter.
Respectfully yours,
[Detailed discussions of provisions of the proposed trade agreement were carried on in Montevideo during November and December. Correspondence regarding these discussions is not printed, as before any definitive agreement was reached the breakdown of similar negotiations with Argentina led to a discontinuance of negotiations with Uruguay, as indicated in telegram No. 1, January 6, 1940, 2 p.m., to the Minister in Uruguay, printed infra.]