611.3331/437: Telegram

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

390. Embassy’s nos. 567, December 22, 9 p.m. and 580, December 24, 7 p.m.

1.
You are authorized (1) to add to Article II the paragraph contained in paragraph No. 3 of your 567 under reference; (2) to delete paragraph 1 of Article XVI provided the Uruguayan Government [Page 590] will, in a note which need not be made public, give assurances that sympathetic consideration will be given to claims of American exporters resulting from the imposition of customs penalties (see pages 3 and 4 of the Department’s instruction No. 295 of May 28, 1941).
2.
With reference to the proposed note regarding preferences to contiguous countries, you should point out that we naturally desire to restrict the area of possible preferences as much as possible; that we are therefore reluctant to extend the reservation regarding preferences to include countries not contiguous to Uruguay; and that in our recent trade agreement with Argentina the reservation regarding tariff preferences was restricted to countries contiguous to Argentina. Nevertheless, in view of Convention VIII, Final Minutes of the regional conference of the River Plate countries, and other special circumstances, this Government is disposed to agree to extend the reservation regarding both tariff and exchange and quota preferences to include Paraguay and Bolivia, subject to a Final Minute providing for prior consultation with this Government regarding any new or increased preferences on articles of interest to the United States, as was done in the case of Argentina.
3.
A draft text of an exchange of notes embodying the foregoing and other appropriate changes will be forwarded by air mail as soon as possible.
4.
Instructions will also be forwarded shortly covering certain minor changes in the general provisions made necessary or desirable by recent developments.
Hull