833.24/1116
The Secretary of State to the Ambassador in Uruguay (Dawson)
The Secretary of State refers to the Embassy’s despatch no. 4082 of March 20, 1944,54 concerning newsprint distribution in Uruguay.
The Department has found the Embassy’s cooperation with respect to the adequate distribution of newsprint very helpful and regrets that the original method proposed and planned by the Embassy, in which the Banco de la República would make the newsprint distribution according to actual requirements, was not successful owing to the distributors of the Canadian newsprint not desiring to implement the newsprint distribution system.
Relying upon the Embassy’s statement, contained in its letter of introduction55 of Mr. Richard H. Hughes56 dated January 7, 1944, that there would be no objection to any plan that Mr. Hughes might propose providing that the plan would result in the equitable distribution of newsprint and remove from the Embassy all responsiblity in the matter, the Department acquiesced to a plan set forth by the Canadian Newsprint Administrator, the Canadian mills, and their selling agents. The plan was explained in the Department’s instruction no. 1879 of February 5, 1944.57 Mr. Hughes participated in the meeting as an accredited representative of the Asociación Gráfica58 and carried proper credentials.
The Department was reluctant to abandon the Embassy’s original plan of distribution but that was the only way to obtain cooperation from the mills in order adequately to keep newsprint moving in a regular manner. There should be no excuse now for non-shipment of newsprint to every consignee.
The first shipments under the new plan will start during April and it is hoped that extra tonnage can be shipped at once to create the backlog against any emergencies that may arise. This will constitute [Page 1613] the three months’ stock position which the Department has attempted to foster.
The Department hoped that the new plan might have relieved the Embassy of the constant turmoil regarding newsprint deliveries and it was for that reason that the Canadian suppliers’ plan was accepted. The complaints against the new plan by the importing newspapers are premature.
Upon reviewing the newsprint file, it is felt that neither the Embassy nor the Department will ever be held blameless by the newspapers no matter what plan be followed. As far back as September 7, 1942, according to Embassy’s telegram no. 784,59 there was a general feeling among newspapers that this Government had let the local press down, and many subsequent complaints were registered with the Embassy, the Department, the Coordinator’s Office,60 and the Uruguayan Embassy in Washington regarding every phase of newsprint manufacture and delivery. The Department always has maintained that any question of a commercial nature between the suppliers and consumers was one to be settled between the principals involved and not the Embassy.
The ramifications of the entire newsprint supply situation, as it affects manufacture, distribution, shipment, division between countries of origin, and ultimate allocation, are very great and cannot be described herein, but taking all matters into consideration, and aside from whether this Government receives proper credit from the recipients of the newsprint, the Department is satisfied that for the past several months every newsprint consumer has received a sufficient amount of newsprint to maintain publication on a slightly restricted basis. The present allocation of 900 long tons monthly represents only a little more than a seven percent curtailment as compared with a much larger restriction on American publications.
There is no acute shortage of newsprint in Canada, in so far as newsprint supply to the other American republics is concerned, nor has the price been increased other than an upward revision in freight rates owing to the curtailment of the American subsidy to freight carriers of newsprint. The Department has obtained a bulk newsprint allocation for all of the other American republics.
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In view of the foregoing, and as mentioned herein, the Embassy is requested to allow the present Canadian suppliers’ plan to operate through the third quarter of 1944, taking careful note of arrivals, equitable supply, and whether general dissatisfaction ensues. If, after a trial is given to the new plan, and, in the opinion of the Embassy, it is not feasible, the Embassy should notify the Department.
[Page 1614]In reply to the Embassy’s airgram A–178 of March 25, 1944, the Embassy need not participate further in the newsprint distribution. The suppliers are now shipping newsprint in accordance with existing contracts and the entire matter is a commercial transaction. The initial consignee is still the Bank of the Republic and the Uruguayan Government can regulate the distribution of newsprint and limit the use thereof according to existing decrees. The quota for Uruguay is 900 long tons of newsprint monthly, which is now being documented and shipped as outlined in the Department’s instruction no. 1879 of February 5, 1944.
The Embassy should continue to report the monthly arrivals of newsprint as heretofore, and, if necessary, bring to the attention of the Department such matters as inequitable distribution, tardy shipments, excessive damage upon arrival, et cetera. The Embassy will act as liaison between the country agency and newsprint importers and the Department.
The Department agrees that everything should be attempted to relieve the Embassy of all responsibility for and participation in newsprint distribution. The present Canadian suppliers’ plan is a step in that direction and deserves a trial.
- Not printed.↩
- Not printed; addressed by the Commercial Attaché to Christian M. Ravndal, Foreign Service Officer and former member of the Board of Economic Operations.↩
- Representative of Moor, Davie and Company of Montevideo, agent of Price Brothers and Company, one of two Canadian firms supplying Uruguay with newsprint.↩
- Instruction not printed.↩
- Asociación Gráfica del Uruguay; in its membership were represented most of the principal newspapers and periodicals of Uruguay.↩
- Not printed.↩
- Office of the Coordinator of Inter-American Affairs.↩