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

No. 6408

Sir: I have the honor to refer to the Department’s instruction no. 2591 of August 2, 1945,96 enclosing a memorandum approved by the Interdepartmental Committee on Proclaimed List stating the criteria to be used in selecting the names which will constitute the hard-core to which the Proclaimed List will eventually be reduced, and a numbered copy of the Proclaimed List, comprised of Revision IX and Supplement 4, pertaining to Uruguay.

There is transmitted herewith a suggested classification of the Pro claimed List for Uruguay …97

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The Department was informed by this Embassy’s telegram no. 539 of August 21, 1945, that a bill containing the necessary legal authority for the carrying out of a replacement program by the Uruguayan Government was pending before Congress and would probably come up for consideration in September; that, since an immediate reduction of the List for Uruguay would prejudice the likelihood of the implementation of a control program, the Embassy recommended that the proposed reduction in the List for Uruguay be stayed until October.

The Embassy’s airgram no. A–321 of September 25, 194596 informed the Department that the replacement program bill had been scheduled by the Uruguayan Congress for consideration in October and that information available indicated that the bill would be approved by a substantial majority, notwithstanding anticipated opposition on the part of the representatives in Congress of the Herrerista Party.

Nothing has occurred to cause the Embassy to believe that the bill will not be eventually passed by Congress, but the situation has been complicated by all members of the Cabinet having tendered their resignations to President Amézaga on September 26, and the present difficulties confronting the President in resolving the problem. Although the proposed replacement program is not a contributing factor [Page 1398] to this political crisis, it is almost inevitable that the latter will delay implementation of the program.

It follows that it is not at all certain that the replacement program in Uruguay will have made sufficient progress by November to justify mass deletions. A prematurely radical reduction of the List for Uruguay would undoubtedly be construed as evidence that the United States and the United Kingdom are no longer interested in the final accomplishment of those economic and political objectives toward which this particular phase of our economic warfare program was directed during the period of armed hostilities.

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In the light of these circumstances the Embassy recommends that the Interdepartmental Committee withhold approval of mass deletions as such from the List for Uruguay until Uruguay’s replacement program is further advanced. In the meantime, it is thought that it would be both practicable and desirable to continue on an individual basis deletions and additions by means of periodic supplements. It is anticipated that at least some firms owned or controlled from Italy will qualify for deletion shortly. In addition to these and the names included in Category IV of the attached classification, there are quite a few names under Category V which the Embassy believes are now qualified for deletion on their merits.

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Respectfully yours,

For the Ambassador:
Robert Y. Brown

Second Secretary
  1. Not printed.
  2. Not printed. The classification included five categories: I, spearhead firms and their personnel, publicly identified with the enemy; II, personnel of Pro claimed List firms listed primarily for cloaking activities; III, firms owned or controlled from Italy; IV, firms liquidated or sold to satisfactory purchasers; V, firms to be deleted when mass deletions became feasible or on a case by case basis in certain circumstances.
  3. Not printed.