833.6463/56: Telegram

The Acting Secretary of State to the Chargé in Uruguay (Chapin)

133. Your 256, June 20, 11 p.m. The Department has been discussing the Rio Negro project with the Uruguayan Minister here and on June 7 gave him an informal memorandum75 which he a few days later transmitted by airmail to the Ministry of Foreign Affairs. This memorandum made it clear that no discussions could profitably take place unless it were clear that the entire German influence was to be eliminated.

The Department at the same time indicated that it would be necessary to devise some American consortium to undertake the work, and of course to get priorities clearance. The latter matter is still under discussion with the Office of Production Management, while Mr. Simmons of the General Cable Company is informally considering the possibility of getting together a suitable group to undertake the project.

There is no lack of technical information here, since Mr. Simmons has the complete detailed specifications, and the discussion at this point is entirely on a policy level.

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It consequently would not appear necessary for any technicians to come from Uruguay. While this Department will of course welcome the visit of the Director of the Rione, it feels that his visit might more opportunely be made later when the basic decisions have been taken and when it would be appropriate to discuss matters of detail.

For your confidential information the Uruguayan Minister concurs in this view.

  1. Not printed.