The Secretary of State to the Chargé in Uruguay (Chapin)
88. Your 190, May 14, 6 p.m. The Department has not yet received the second of the despatches mentioned and cannot, consequently, comment fully. It is the Department’s view, however, that it would not be enough for the Uruguayan Government to consider the proposed contract a separate one to be completed by American engineers. The Department feels that the German influence must be eliminated entirely.
The Department has the copy of the public contract with the German syndicate which was published in the Diario Oficial of April 16, 1937, but it understands that there is in addition a confidential contract. Please inform the Foreign Minister that the Department would require copies of all contracts and commitments entered into with the German syndicate before making final decision.