833.6363/273
The Ambassador in Uruguay ( Dawson ) to the Secretary of State
[Received January 20.]
Sir: I have the honor to refer to my despatch no. 3739 of January 6, 1944,86 concerning negotiations with respect to the renewal of the marketing agreement between Ancap87 and the private petroleum companies, transmitting copies of memoranda recently exchanged between the parties, and reporting that, according to representatives of the American companies concerned, a subsequent interview with the General Manager88 of Ancap had revealed a very intransigent attitude.
Yesterday, I had a further conversation regarding the matter with Foreign Minister Serrato. Referring to my memorandum of November 22, 1943,89 I recalled that the Petroleum Pool had been established on the basis of the voluntary participation of the various interests concerned, including the petroleum companies; that one of the basic principles was that the relative commercial positions of the companies would remain unchanged for the duration of the Pool’s operations; that the Department of State believed that it would be contrary to the general interests of the war effort as well as to those of Uruguay to do anything which might disturb the successful functioning of the Pool; and that the Department hoped that the conversations between Ancap and the companies would result in a renewal for a period sufficiently long to assure the maintenance of the present situation through the conclusion of an agreement consistent with the interests of the common war effort.
I told the Minister that I was informed by the representatives of the American companies that Ancap sought to impose conditions implying important changes which would be contrary to the principle that the relative positions should remain unchanged. I said that the representatives informed me further that it was their impression that Ancap did not give due consideration to the services which the Pool has rendered to Uruguay or to the sacrifices made by the petroleum companies for the war effort. I referred to some of the advantages which Uruguay has derived from the Pool operations and to the relatively favorable treatment which it has received, suggesting that full information concerning this phase of the matter could be obtained from the Uruguayan Chairman of the local Pool Committee.
[Page 1629]Sr. Serrato said that he was familiar with what had been done for Uruguay and appreciated the efforts made to assist the country’s economy. He said that this was no time to create difficulties for the United States and Great Britain and that he wanted a mutually satisfactory agreement to be reached. He had, he told me, read both Ancap’s memorandum of December 24 and the companies’ reply of December 29 (copies of which were transmitted with my despatch no. 373990). He remarked that his own impression was that both documents revealed an unyielding attitude and that both parties were probably sparring for position. He said that he would talk with the Ancap officials and recommend a more conciliatory attitude but that, if they desired to obtain a long-term renewal, the companies must also be prepared to make concessions.
[Here follows a summarization of Ambassador Dawson’s impression of the situation.]
Respectfully yours,