833.6363/6–2944
The Ambassador in Uruguay ( Dawson ) to the Secretary of State
[Received July 12.]
Sir: I have the honor to refer to the Embassy’s despatch no. 4158 of April 3, 1944,93 and previous correspondence concerning negotiations for the renewal of the marketing agreement between Ancap and the private petroleum companies and to report the following as the present status of these negotiations.
It will be recalled that Ing. Carlos Vegh Garzón, General Manager of Ancap, had informed the companies’ representatives that their reply [Page 1631] to Ancap’s recent memorandum had make a favorable impression upon various members of the Board of Directors of Ancap. The Embassy also reported that negotiations had taken on a more favorable aspect and that the company representatives felt confident that a fairly satisfactory agreement would soon be arrived at.
The Embassy is now able to report that, at a meeting held on May 22, 1944, the proposal previously submitted by the oil companies, (referred to in Embassy’s despatch no. 4158) was discussed between representatives of the companies and members of the Ancap Board. As a result of this meeting, Ing. Vegh Garzón, General Manager of Ancap, addressed a communication under date of June 9, 1944 to the companies, setting forth in detail the terms on which Ancap would be willing to enter into a five-year agreement which, in general, were agreeable to the companies and embodied no appreciable differences to the viewpoints which had been agreed upon at the meeting.
The representatives of the oil companies have informed the Embassy that they are now awaiting the drawing up of the contract but that the Directors of Ancap wish to submit it for the approval of the Executive Power in order to avoid responsibility and possible political repercussions. The companies feel that this is not essential as the Directors of Ancap are empowered to sign but they are unable to avoid insistence on this step which may cause some further delay.
No opposition on the part of the Executive Power is anticipated and it is likely that the agreement may be signed shortly, at which time a copy thereof will be furnished the Department.
Respectfully yours,
Counselor of Embassy
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