611.3331/419½: Telegram

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

440. In spite of constant prodding and frequent inquiries on the part of the Embassy, the Uruguayans have failed thus far to submit counter-proposals or observations on our drafts of general provisions or schedules. At the same time they have constantly assured us that our proposals were being studied by various Government agencies and that conversations would be resumed shortly. The delay is probably due primarily to the chronic dilatoriness of Uruguayan officials in such matters. However, other factors in the situation may well be the present satisfactory state of Uruguayan exports to the United States and lack of any particular interest in the negotiations on the part of Dr. Guani since the abandonment of his projected trip to the United States.

The signature of the United States-Argentine agreement37 aroused the Uruguayans temporarily at least and was followed by a Foreign [Page 572] Office statement to the press conveying the impression that Uruguay’s negotiations with us are farther advanced than is actually the case.

The Director of Commercial Affairs of the Foreign Office informed Chapin last week that an important meeting of Uruguayan officials will be held tomorrow to consider our proposals and that informal conversations with the Embassy could probably be resumed within a few days. He reiterated that the principal stumbling block remained the question of most favored nation treatment as respects exchange control but that his first impression after reading the appropriate clause of our agreement with Argentina was that some similar formula might be worked out with Uruguay.

As soon as further information is available regarding the Uruguayan attitude, I shall report by cable with respect to prospects and our recommendations.

  1. Signed October 14, 1941, at Buenos Aires. For text of the agreement and supplemental exchange of notes, see Department of State Executive Agreement Series No. 277, or 56 Stat. (pt. 2) 1685.