611.3331/422: Telegram

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

454. Department’s telegram 282, of October 25. In the conversation in question I of course took advantage of the opportunity to point out to the Minister of Foreign Relations that the prompt conclusion of the proposed trade agreement was the best means of assuring most-favored-nation treatment for Uruguayan exports. We are urging this point of view on the Uruguayans and shall continue to do so.

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With reference to my telegram 440 of October 20, Chapin, Glover and Gilmore40 met this morning with three Uruguayan representatives to resume informal discussions which we shall push as rapidly as possible. Following today’s meeting our present impression is that a mutually satisfactory formula assuring us most-favored-nation treatment as respects exchange control is the principal stumbling block and presents a serious problem which may require difficult and protracted negotiations.

If the Department could send Phelps41 or some expert with a knowledge of Spanish to Montevideo he could be of the greatest assistance to us. I request that the Department inform me whether it can send an expert and if so how soon he could arrive and how long he could stay.

  1. Eugene A. Gilmore, economic analyst attached to the Embassy in Uruguay.
  2. Vernon L. Phelps of the Division of Commercial Policy and Agreements.