833.6363/233: Telegram

The Chargé in Uruguay ( Dwyre ) to the Secretary of State

617. Reference Department’s 341, June 23, 7 p.m. As required by Uruguayan protocol, I obtained permission from Foreign Office to discuss informally petroleum matter with appropriate Uruguayan officials as authorized in Department’s 321 [341]. The British Minister requested and was also granted similar permission and Foreign Office made appointment for us to call jointly upon President Ruiz of newly appointed board directors of Ancap. We mentioned to Ruiz concern of foreign companies as respects their position and requested an expression of the views of appropriate authorities with respect to situation and possible renewal of present agreement. Ruiz replied that Directorate had just few days ago taken over and although it was aware that contract existed between Ancap and foreign companies it had not had opportunity to study question of renewal. He assured me that he would inform board of our visit which he expected to do today and observed that in view of short period remaining it might have to consider arrangement for renewal of contract.

In view now of the Department’s 341 and fact that Ambassador will not arrive here until 29th I shall seek interview with Ruiz tomorrow and convey to him the considerations embodied in last paragraph of cited telegram.