611.3331/353: Telegram

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

113. For the Secretary and Under Secretary. It seems unreal for us to urge Uruguay to stand up against the spread of Nazism and to [Page 1169] promise military assistance for the maintenance of her political independence unless we are at the same time prepared to promise effective assistance for the maintenance of her economic independence. The country must sell its products somewhere. In 1938 Germany and the small buffer states now under German domination bought 35% of Uruguay’s exports, Italy bought over 4%, France purchased over 7%, and Great Britain 26%. In other words (if Britain goes the way of France) about 72% of Uruguay’s total exports were purchased by Germany or countries which will have since come under German domination. If Uruguay is unable to dispose of these products to other countries, then in order to continue selling to the countries listed above Uruguay will be forced to become economically dependent upon Germany, which obviously implies political dependence as well.

If we hope to keep Uruguay from falling under Nazi control we must face the problem realistically and be prepared to purchase for at least several years most of Uruguay’s export products heretofore purchased by Germany and by countries at present dominated by Germany.

Incidentally, Uruguayan meat and wool could well be used for relief purposes.

Wilson