740.33112 RP/4–2546: Airgram

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

confidential

A–139. Reference Embassy’s despatches no 7070 of March 21 and no. 7093 of March 29, 1946,29 concerning economic security controls and status of replacement bill (for liquidation of Axis spearheads) pending in Uruguayan Congress:

(1)
In spite of vigorous appeal of Foreign Minister Rodríguez Larreta (despatch no. 7093 of March 29) no further progress has been made in consideration of bill in Congress.
(2)
In meantime, political situation has continued to deteriorate from Administration’s standpoint, and Foreign Minister in particular is being bitterly attacked by opposition which demands his resignation, alleging he is responsible for Argentine refusal to supply needed wheat.
(3)
Situation is now further aggravated by resignation of Blanco-Acevedista Ministers Castellanos and Schiaffino,30 concensus being that President will experience great difficulty in filling vacanies and organizing Cabinet which can command majority in Congress.
(4)
In circumstances, outlook for enactment of replacement legislation is far from bright and Auxiliary Officer Ezequiel D. Salinas, who has devoted so much time and effort to the matter, now expresses fear (in which I concur) that “bill may be lost in the political scramble.” As Department knows, Embassy has pressed matter consistently and vigorously and bill has had strong support of such stout friends of democracy as Rodríguez Larreta, Minister of Interior Carbajal Victorica, and Senator Dardo Regules. Administration fully realizes deplorable position in which failure of bill will leave Uruguay but unfortunately it seems powerless to remedy matters.

Dawson
  1. Neither printed.
  2. Rafael Schiaffino, Minister of Industry and Labor, and Daniel Castellanos, Minister of Public Instruction.