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

Dear Bill: I write with reference to your letter of December 11, 1942 which enclosed the memorandum submitted to you by the Uruguayan Government.

The Department has transmitted copies of the memorandum to the Export-Import Bank and has addressed a letter to Mr. Pierson requesting the Bank to draw up a contract which would be ready for Dr. Guani to sign during his stay in this country. I am confident that the contract will be satisfactory to the Uruguayans, and I therefore feel that the negotiations can be speedily concluded while Dr. Guani is here. I do not believe that there will be time to send a copy of the proposed contract to Uruguay before Dr. Guani’s trip, but I am certain that the two questions which you pose on the second page of your letter can be provided for satisfactorily. Dr. Guani should bring with him certified copies of laws or decrees empowering the executive to contract a foreign loan and his authorization to sign the proposed contract for $7,500,000.

I do not believe that it will be necessary to obtain from the Uruguayans any additional memoranda as the Department and the Bank know in general the purposes of the credit, and the question of materials to be imported from the United States has already been made clear to the Uruguayan Government.

With cordial personal regards,

Laurence Duggan