833.51/991: Telegram

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

575. President Baldomir sent for me yesterday and together with Minister of Finance stated that Government wished to explore possibility of obtaining from Export-Import Bank or other source a loan of $30,000,000 for financing public works. He said that loan would be applicable to new projects, chiefly roads, for which Council of State has just approved a new bond issue of 33,000,000 pesos and in addition to Carrasco Airport and other public works previously authorized, he stressed need for public works to relieve unemployment and prevent social unrest. He stated that loans to cover budget deficits will be floated locally but that domestic market is unable to furnish the additional funds required for public works. Further details, together with reply to Department’s instruction 617 of June 12th by next courier.