811.20 Defense (Wool)/672a: Telegram
The Secretary of State to the Ambassador in Uruguay ( Dawson )
713. In an exchange of diplomatic notes today, United States Government agreed to purchase not exceeding 30,000 bales of 1941–42 wool carry-over and to underwrite 37,500 bales of 1942–43 clip.
The agreement provides for purchase of 1941–42 carry-over of acceptable grades and types of Super and Bonne Belle at an over-all average price of 37 cents per pound in grease c. and f. for Uruguayan Supers from estimates heretofore delivered by Uruguayan Commission. All grades of Bonne Belle are at 2 cents per pound less than the corresponding grades of Super style. Terms of payment cash against shipping documents or, if shipping space not available, payment against warehouse receipts 60 days after wool is ready for shipment with appropriate deductions.
1942–43 Clip. The United States underwrites 37,500 bales of Super and Bonne Belle styles and grades acceptable at an overall average price of 35 cents per pound in the grease c. and f. for Super style. Bonne Belle corresponding grades 2 cents per pound less. Actual underwriting prices for each grade are stipulated in agreement. No wool of 1942–43 clip shall be offered prior to June 1, 1943. Any time after June 1, 1943 either government may terminate underwriting feature by giving 90 days notice.5 Terms of payment same as for 1941–42 carryover.
General provisions applicable to both clips. Both governments recognize that all available shipping space be used and agree to lend best efforts to accelerate movement of wool. At least 25 percent of each shipment shall be 1941–42 carryover wools and if 1942–43 clip wool unavailable, all available space will be used for carryover. Contracts for 1942–43 clip entered into before November 1, 1942 will be honored in making shipping allocations.
Both governments agree to consult with joint objective of limiting exports of Uruguayan wool in manner that wool required by United States for war purposes is made available and exports are not permitted in such manner that it becomes available, directly or indirectly, for purposes disadvantageous to the conduct of the war.
Handling of wools is now being worked out in detail but will be handled in so far as possible through regular trade channels with all necessary measures taken to insure classifications in accordance with established grade, type and packing standards.
Copies of the notes are being forwarded by airmail.
- Notice of cancellation of the agreement by the United States was given on July 13, 1943, effective in 90 days.↩