The Ambassador in Uruguay (Dawson) to the Adviser on Political Relations (Duggan)

Dear Larry: With reference to my despatch no. 1807 of November 11, 1942, and my letter to you of the same date,44 regarding the proposed loan to Uruguay for public works:

As you no doubt know, Dr. Guani expects to visit Washington in January. Naturally, he wants to bring back something tangible and it has occurred to me that the proposed loan would be most indicated. I discussed the matter with him yesterday and he was of course very pleased with the suggestion.

We agreed that in the circumstances he will not send any instructions to Ambassador Blanco to take the matter up with the Department. I pointed out, however, that, in order to pave the way for his own negotiations, it would be most helpful if he would let me have as soon as possible the memorandum desired by the Department with respect to the public works planned and the quantities of iron and steel required.

I shall follow this up and endeavor to obtain and transmit the memorandum to you as soon as practicable.

I trust that the course proposed will meet with your approval and that matters may be so arranged as to enable Dr. Guani to obtain the loan while in Washington.

An alternative course would have been to have Ambassador Blanco initiate the negotiations and let Dr. Guani conclude them. I seriously question, however, whether in that case Dr. Guani would be assured the credit which we would like to see him have.

With cordial personal regards,

Sincerely yours,

William Dawson
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