833.6363/274: Telegram
The Ambassador in Uruguay (Dawson) to the Secretary of State
[Received 1:33 p.m.]
135. Petroleum companies advise Embassy as follows concerning status of their negotiations with Ancap referred to in my despatch 3763, January 11. Ancap has offered 1, renewal of existing agreement without change for 2 years or, 2, renewal for 5 years with proviso that companies’ participation in sales shall be limited to the volume of business done by them in 1941. The companies have rejected both alternatives. They seek 5–year renewal and claim that to deny them proportionate share in increase of business over 1941 level would be equivalent to partial expropriation without indemnification. However they have offered in return for 5-year renewal to surrender to Ancap first 5 percent of such increase. They believe attitude of Ancap directors dictated solely by domestic political considerations. They quote Ancap as stating that if neither of its offers is accepted matter must be left to three governments concerned and Uruguayan Government must assume responsibility for defending before Congress any concessions made.
British Minister91 who has made no further representations since those reported in my despatch 3557 of November 2392 has cabled his Government for instructions. In his cable he expresses view in [Page 1630] which I of course concur that negotiations should preferably continue on commercial basis between Ancap and companies rather than between governments.
- George Gordon M. Vereker.↩
- Foreign Relations, 1943, vol. vi, p. 771.↩