833.6363/273: Airgram
The Secretary of State to the Ambassador in Uruguay ( Dawson )
A–62. The Department believes the negotiations between the American and British petroleum companies on the one hand and the Ancap on the other should continue on a commercial basis. Reference in this connection is made to your despatch number 3763 of January 11 and telegram 135 of February 1, noon.
As you know, the Department regards as very important the smooth operation of the pool arrangements now in effect in Uruguay and all other Latin American countries dependent upon imported petroleum supplies. A necessarily basic principle in the pool operation is the maintenance of the status quo among the various commercial interests. You would therefore be justified in continuing to discourage any proposal of the Ancap which would disturb the present situation and consequently threaten the smooth operation of the pool, as long as the transportation and product shortage situation, which resulted in the creation of the pool, continues to exist. However, any negotiations contemplated for the period extending beyond the probable duration of the critical transportation and product supplies condition relate almost exclusively to commercial considerations which should be handled by the interested parties.