611.3331/432: Telegram

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

558. Department’s telegram no. 324, November 27, 1941, and Embassy’s despatch 395, December 13. Silveira Zorzi of the Bank of the Republic indicated today during an informal conversation that a note regarding preferences to sterling area containing same reservations on Uruguay’s part as are embodied in exchange of notes accompanying agreement with Argentina would be acceptable.

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With reference to paragraph number 6 of the Department’s telegram no. 324, please telegraph that portion of text of proposed note which differs from corresponding Argentine note.

It is believed that the views expressed today by Zorzi indicate that the Uruguayan Government is now prepared to accept our position with respect to the general provisions and related notes and that a statement to this effect will be officially communicated to the Embassy at a meeting with appropriate officials, arranged for December 22. If the Department does not find it necessary to insist upon more than a very limited number of improvements in the concessions offered in the Uruguayan counterproposal to schedule I transmitted with my despatch under reference it is believed that negotiations can be terminated within the near future.

Certain necessary clarification of nomenclature included in aforementioned counterproposal together with Embassy’s recommendations will be submitted in subsequent telegram.