The Secretary of State to the Ambassador in Uruguay (Dawson)

No. 12

Sir: Reference is made to the Department’s telegram no. 166 of July 18, 194135 stating that our definitive proposals with respect to Schedules I and II of the proposed trade agreement would be transmitted within a few days.

These proposals are enclosed herewith together with two memoranda showing (1) the items in respect of which our present offers constitute an improvement compared with the proposals made in December 1939; (2) the comparative trade coverage of the proposed Schedules (enclosures 1 to 4, respectively).36 You are requested to transmit these proposals to the appropriate Uruguayan authorities. In doing so, their strictly confidential nature should be emphasized.

Should the Embassy, prior to transmitting these proposals to the Uruguayan Government, desire to make any comments in regard thereto on the basis of available information, such comments should be reported to the Department by telegram.

You will note that the proposed Schedule I provides for exemption of all scheduled items from payment of any portion of the Uruguayan import charges in gold. The elimination of the gold payment requirement with respect to each of these items, in addition to effecting a reduction in import charges, would do away with the present uncertainty in the calculation of such charges, and would simplify customs procedure.

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It may also be noted that Item number 167 of the Raw Materials Schedule combines and supersedes present tariff Item numbers 82 to 86 inclusive, 120, 121, and 167. You should request a concession on Item 167 in the form indicated in the proposed Schedule I, but in the event the Uruguayan Government should indicate that it would prefer not to consolidate these tariff items, you are authorized to request the proposed concessions on these items set forth separately.

As regards Schedule II, you should emphasize, by specific reference to the pertinent memorandum, that our present proposals constitute a substantial improvement over those offered in December 1939, and that concessions of the magnitude proposed should be of substantial benefit to the Uruguayan economy, even at the present time, and, upon the resumption of more normal trade and shipping conditions, of even greater value. The concessions requested for inclusion in Schedule I are considered moderate, and would tend to offset the increased costs incident to the importation into Uruguay of the articles covered by the Schedule, with corresponding benefits to the Uruguayan consumers.

Very truly yours,

For the Secretary of State:
Dean Acheson
  1. Not printed.
  2. None printed.