811.20 Defense (Wool)/360: Telegram

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

509. My telegram No. 448, October 25, 1 p.m. Following conversations along the lines of Department 278, October 23, 11 p.m., Uruguayan authorities appear favorably disposed to some such solution providing it can be made more concrete.

Based upon the advice given Gilmore63 in Buenos Aires by Williams who has been conducting Argentine negotiations, I suggest that I be authorized to submit the following concrete proposal.

The Defense Supplies Corporation would agree to buy for one year from the Uruguayan Government or such agency as the latter may designate the entire exportable surplus of wool and hides at prices prevailing in the principal United States markets at the time of the offer. Grades and qualities would be left for later determination it being understood as in the case of our agreement with Argentina that we will include certain grades and qualities of wool and of hides normally of little interest to American consumers.

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In view of existing treaty obligations Uruguay will not establish any export control for these products but will place the total exportable surplus at our disposal.

I also request authority to offer a commitment similar to that in the Argentine Purchase Agreement to the following effect:

“Upon the conclusion of an agreement covering the proposed purchase of wool and hides the Government of the United States will take all necessary steps to guarantee, to the fullest extent compatible with national defense, that the Republic of Uruguay will be supplied with all essential raw materials and manufactured products which are indispensable for its economic and industrial life.”

  1. Presumably Eugene A. Gilmore, economic analyst attached to the Embassy in Uruguay.