800.8830/1592: Telegram
The Secretary of State to the Ambassador in Uruguay (Dawson)
324. Your 436, May 30, 1 p.m., and 433, May 29, 5 p.m. Following from the War Shipping Administration:
“The United States through the War Shipping Administration offers to charter or purchase Uruguayan ocean going vessels upon mutually satisfactory terms and conditions.
In connection with such charter or purchase, the United States offers to provide satisfactory assurances or guarantees that, in the event the United States charters such vessels and the Oriental Republic of Uruguay is held liable to the owners thereof for charter hire for the period during which the vessels are chartered to the United States in an amount in excess of that paid by the United States, the United States will pay to the Oriental Republic of Uruguay the difference between the charter hire paid by the United States and the charter hire for which the Oriental Republic of Uruguay is held liable. Correspondingly, should the United States acquire title to the vessels, the United States will pay to the Oriental Republic of Uruguay the difference between the purchase price paid by the United States and the purchase price for which the Oriental Republic of Uruguay is held liable.
It is understood that any such liability will be determined by postwar arbitrations or other international determination established in accordance with proceedings mutually satisfactory to the United [Page 707] States and the Oriental Republic of Uruguay. If the foregoing is a satisfactory basis for negotiation, the United States will make prompt offer for charter or purchase of the vessels.”