Office of the Historian

833.24/7–2544: Telegram

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

Montevideo, July 25, 1944—4 p.m.
[Received 7:56 p.m.]

700. While Farrell regime75 has undoubtedly applied economic sanctions to Uruguay, it is not easy to give a clear picture owing to fact that Argentine action does not appear to have been consistent or clear cut and Uruguayan officials and consignees are often left in doubt as to whether export licenses are denied or merely held up.

Following is based on careful review of information since February 25 and further survey conducted since receipt of Department’s circular telegram July 20, 2 p.m.76

1.
Argentina has denied for several months and continues to deny permits for exports of liquid chlorine, anhydrous ammonia, carbon [Page 1626] disulphide and aluminum sulphate. Only exceptions reported have been fifteen pounds of chlorine and three tons of carbon disulphide released to Duperial which confirms that all other applications have been denied. Duperial states that cylinders filled with chlorine for shipment to Uruguay were emptied in Buenos Aires and shipped empty to United States.
2.
Salt (my 675, July 1479) is understood to have been placed under export control on June 19 and since then Uruguayan consignees have been informed of the denial of numerous permits. Information received during past few days indicates that a few small shipments may be permitted and there is unconfirmed report that Argentina will grant permits up to 20% of salt applications already filed which total some 10,000 tons.
3.
After great delay, Argentina has finally authorized shipment of 10,200 tons of seed potatoes purchased by Uruguayan seed service but requires that a major portion be shipped in cotton bags of Argentine manufacture which will materially increase cost.
4.
Export permits for quebracho railway ties are being denied except on barter basis and in exchange for products chiefly metals which Uruguay has thus far declined to export.
5.
Sanctions are not known to have affected other products mentioned in Embassy’s 338, April 11 possibly because most of them are not included in Argentine export control procedure. However American-owned Cia Uruguay a Cemento Portland is greatly concerned lest gypsum shipments be held up. Company has several applications pending with Argentine authorities.
6.
Please see my despatch 4593, July 1779 concerning note from ForOf requesting cargo space for perfumery bottles and stating that Argentine Government had prohibited transportation of Uruguayan cargo on Argentine vessels, WSA representative Montevideo80 reports that on March 2, Uruguayan exporters requested assistance in shipping to Puerto Rico jerked beef formerly shipped on Argentine vessels and no longer accepted. These shipments have since been regularly carried on WSA vessels.
7.
As respects treatment of travelers by Buenos Aires customs, see despatch 4092, March 21.79 According to reports of travelers, situation described therein still continues although security of inspection and obnoxiousness of officials appear to vary from time to time according to temper of individuals and general Argentine mood.

Dawson
  1. For correspondence on U. S. withholding of recognition of the Farrell regime, see pp. 252 ff.; see also correspondence on efforts of the United States to promote a common policy toward Argentina among the American Republics, pp. 288 ff.↩
  2. Not printed; it requested information on the extent to which Argentina was withholding export licenses as a measure of reprisal (835.50/7–2044).↩
  3. Not printed.↩
  4. Not printed.↩
  5. Ray A. Gibson, representative, War Shipping Administration.↩
  6. Not printed.↩