740.34112A/6–2747: Airgram

The Acting Secretary of State to the Embassy in Uruguay


A–231. Please report to the Department whether the agenda of the Uruguayan Congress lists the subject of a bill for liquidation and replacement of Axis firms? Reference is made in this connection to your despatch No. 798 of June 27, 194719 referring to a statement by Dr. Pratt de María that efforts would be made to obtain the necessary legislation.

The continuing active interest of this Government in this matter should be made known to the Uruguayan Government at the earliest appropriate opportunity in whatever manner you deem most effective. The Department now considers it advisable, however, to lower its sights to a replacement program covering only firms clearly representing important German and Japanese external assets in the hope that limitation of this program may in some measure aid in strengthening the hand of the Uruguayan administration in pushing for enactment of suitable legislation. With respect to such firms as Staudt, Quincke, Brehmer, Rabe and any others previously recommended to the Uruguayan Government for expropriation (or intervention) solely or principally on grounds of inimical activities, no further representations should be made by you or information proffered unless it is specifically requested by the Uruguayan Government. For your information in this regard, the last shadow of control by the Argentine Government over the principal office and [Page 1052] assets of the Staudt firms in Argentina has now been removed with the return to Ricardo Staudt of the 570 shares in Staudt y Ciá. owned by his German sisters. A copy of despatch No. 3032 of September 25, 194720 from the Embassy at Buenos Aires reporting this development is being forwarded to you by the Department.

If the Uruguayan Government should inquire whether this Government is still interested in Staudt, Quincke et al, you should reply that this Government has not changed its view respecting these firms, but regards liquidation of branches and subsidiaries of firms in Germany and Japan of greater immediate importance. For your guidance in discussing this subject with the Uruguayan authorities, the Department believes that the following firms should be regarded by the Uruguayan Government as the most important targets for action:

Complete Ownership from Germany (Direct):

  • Banco Alemán Transatlántico
  • La Quimica Bayer Wescott y Cia.
  • La Mannheim, Cía. de Seguros
  • Productos Farmaceúticos Schering (trademarks)

Partial Ownership from Germany (Direct):

  • Bayer y Cia.—about 80%

Complete Ownership from Japan (Direct):

  • Omura, Matsutaro
  • Yamada y Cia.

Partial Ownership from Germany through Head Office in Argentina (Indirect):

Lahusen y Cia.—21.57%. With respect to this case it should be made clear to the Uruguayan authorities that adequate action contemplates removal from the firm of the German interest only.

. . . . . . .

Copies sent to Buenos Aires.

  1. Not printed.
  2. Not printed.