833.6463/45
The Secretary of State to the Minister in Uruguay (Wilson)
Sir: The Department has received your despatch no. 672, November 19, 194035 with regard to the possible utilization of American equipment or financial assistance to complete at least a portion of the work on the Rio Negro Hydroelectric Project.
The Department is in agreement with the various considerations advanced in your despatch and feels that all necessary precautions [Page 1175] should be taken to see that the German firm which has contracted for this work is not enabled to complete it through American assistance. This consideration will be borne in mind in connection with any request for financial aid which might be utilized for this purpose. You are authorized, in your discretion, to discuss this matter informally with the Foreign Minister.
On December 9, 1940 the Executive Committee of the Export-Import Bank agreed in principle to extend a credit of $5,000,000 to the Uruguayan Bank of the Republic for exchange purposes and an additional credit of $2,500,000 in connection with the Uruguayan Government’s request for assistance in public works projects. The Department’s position with regard to the possible utilization of this $2,500,000 credit by the German syndicate constructing the Rio Negro project was brought to the attention of the Executive Committee of the Bank and the considerations advanced at that time will guide the Bank in making allocations from this credit.
Very truly yours,
- Not printed.↩