Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

733.5 MSP/1–1954

The Ambassador in Uruguay (McIntosh) to the Department of State

secret
No. 328

Montevideo, January 19, 1954.

Subject:

• Report by the U.S. Ambassador to Uruguay to the Director for Mutual Security on the Operation and Status of Programs Under the Mutual Security Act of 1951. Period Covered: July 1 to December 30, 1953.

The bilateral military assistance pact between Uruguay and the United States became fully effective on October 14, 1953, with the initialling by representatives of each government of the military plan.¹ Thereafter, pursuant to the Department’s instructions, conversations were begun by the Service Attachés with the Minister of National Defense² with a view to encouraging the Uruguayan Government to make available the amounts of local currency needed to establish a MAAG. Unfortunately, the Minister took the position that due to the fact that Uruguay is entering a pre-election period with national elections scheduled for November 1954, it would be imprudent for the Government here to take any steps which might make the pact a campaign issue. The Minister recalled the bitter fight which the government had had to obtain congressional ratification of the pact and expressed the view that the setting up of a military advisory group at this time would be certain to attract attention and thus revive the whole issue. The Minister and the Inspector General of the Army suggested the possibility of an ad hoc operation of the agreement (involving no expenditure of funds by Uruguay) whereby either existing U.S. service personnel in Uruguay would be utilized, or if additional personnel were required, they should be incorporated in the Attaché set-up rather than as part of an advisory group.

A further complication is the Uruguayan constitutional provision which forbids the voting of appropriations in the 12-month period immediately preceding elections. This would apparently preclude any request for additional funds for the MAAG until after the elections, even providing the government here was disposed to request such funds.

At the close of the period under review, instructions were received by the Embassy to make a further effort to persuade the Uruguayan government to implement the pact by setting up the MAAG. In view of the facts as described above, the officers concerned with this problem are not optimistic that it will be possible to change the Uruguayan government’s decision. The Foreign Office, however, has sent instructions on the subject to the Uruguayan Ambassador in Washington, who is expected to further discuss the matter with the Department.

The actual situation is that at present the pact is being implemented and operated without the setting-up of a MAAG organization in Uruguay. This has been accomplished through the USAF mission performing the duties of MAAG. To date, approximately 75 tons of aircraft spares have been received. This equipment is now being warehoused. End-item utilization of some of these parts is expected before the end of the fiscal year 1954.

Due to the problems attending the initiation of MAAG in Uruguay, it is doubtful that visits of the programmed teams will be called during this fiscal year. However, this project will be given further consideration as the conditions surrounding MAAG in Uruguay are clarified.

As regards Uruguay’s ability to meet the financial obligations incurred under the pact, reference is made to comments on this subject in Ambassador Roddan’s report of July 10, 1953³ in which he called attention to the government’s growing financial difficulties. Since that was written, the government’s financial position has further deteriorated. Considering, however, that only relatively small amounts of local currency are required to establish a MAAG in Uruguay, it can be expected that once the government feels able to move ahead, the necessary funds should be forthcoming.

The situation between Uruguay and Argentina continues unsatisfactory with trade and travel practically at a standstill. There seems no immediate prospect of improvement in this situation, which inevitably creates tension and anxiety in a small, relatively defenseless country such as Uruguay. The recent improvement in Argentine-U.S. relations, however, while regarded by many Uruguayans with some uneasiness may eventually pave the way for more normal relations between Uruguay and Argentina.

There has been a definite cooling of Uruguayan traditional friendship for the United States during the past six months, due in part to uneasiness as just mentioned, over the closer relations between Washington and Buenos Aires, as well as to resentment over U.S. tariff policies, belief that the U.S. is too tolerant of dictatorships, etc. Despite this cooling, however, we believe that there is no reason to doubt that Uruguay would stand firm with the United States on the great issues in world affairs.

In technical assistance, FOA/IIAA activities, civil aviation was added during the past six months to the fields of assistance provided in Uruguay. This makes a total of three new fields of activity initiated during 1953, the other two being Industrial Safety and Census and Statistics, bringing to a new peak the scope of technical assistance to Uruguay. The program continues relatively small, however, with only nine U.S. personnel assigned to this country.

The principal activity in the past six months has continued to be in Public Health, with emphasis on the operation of six health centers. The tenth anniversary of the cooperative health program was celebrated in November with various ceremonies. The U.S. Ambassador made the trip to Young, near Paysandú, and to San José, to participate in the opening of a new health center in those towns. Both the ordinary citizenry and the Uruguayan officials in the localities are fully aware of, and appreciative of, U.S. participation in these projects, which have been widely publicized in the local press.

In the field of public administration, progress continued in advising the government on a public purchasing law, sound procurement policies, etc. The census consultants attached to the program continue to work with Uruguayan officials toward the goal of the first national census in many decades. An expert on industrial safety continued his work in this field and an in-service training course for inspectors of the Ministry of Industries and Labor was completed on November 30. A survey was completed in December 1953 of the air traffic control at the international airport in Carrasco near Montevideo. In December, at the request of the Uruguayan state-owned airline, a survey of eight airports in the interior of the country was initiated by an engineer of the regional aviation assistance group. Training grants were awarded in a total of 14 for the year 1953, in the fields of:

• Social Welfare
• Home Economics
• Vital Statistics
• Statistics
• Agriculture
• Industrial Safety
• Coast and Geodetic Survey
• Railroad Management
• Airport Management
• Labor

Satisfactory progress in the FOA field continued during the last six months of the year. However, the program continued to be handicapped by dilatoriness of both governments in making their financial contributions available. This delay, usually on the side of Uruguay, has handicapped technical assistance activities in Uruguay practically ever since their inception. In view of the cumbersome way the Uruguayan government proceeds, however, there is little hope that this situation can be entirely cleared up. At the end of the period under review, the Institute had presented to Washington the question of whether the Uruguayan government should be requested to extend the health and sanitation program until 1955; otherwise, it would terminate in 1954. Instructions are being awaited on this point.

Technical assistance is needed in Uruguay to a greater extent than has been requested. Receptivity of the assistance is generally good among the executive departments. On the other hand, the political situation results in slow or no action on proposals before the legislature, under similar conditions encountered by the military assistance pact. The agricultural agreement remains unratified by the parliament and is considered dead in view of the present proposal to obtain assistance from the Food and Agriculture Organization. The basic technical assistance agreement likewise has not received legislative consideration. The Industrial Productivity agreement received preliminary bipartisan approval in August by the plural Executive, but nothing is known as to the reception it may find if and when presented to the parliament. Requests for assistance are usually initiated within the government agencies by interested Uruguayan officials who steer the project so as to obtain the approval of top executive authorities. This manner of making requests, lacking as it does a coordinated approach, has resulted in a spotty program rather than an integrated, balanced program. The prospect for a more balanced program exists, however, if multilateral technical assistance in agriculture through FAO, now awaiting legislative approval, and the Industrial Productivity Program through IIAA, are initiated.

The hundreds of favorable contacts made annually by U.S. technicians with government officials and business men of Uruguay, in addition to the substantive results of technical assistance, are considered to be significantly helpful in focusing attention on the interest of the U.S. in Uruguay’s welfare, thus strengthening the feeling of friendship with the U.S among numerous Uruguayans.

Despite the various discouragements and setbacks, it is believed important to the national policy for the United States to continue to try to assist Uruguay in the field of technical assistance.

Dempster McIntosh

1. Concurrent with the negotiations for the Military Assistance Agreement between the United States and Uruguay, representatives of the two countries conducted negotiations for a supplementary military plan. This “Plan of the Governments of Uruguay and the United States of America for Their Common Defense,” initialed on Oct. 14, was transmitted to the Department of State under cover of despatch 199, from Montevideo, dated Oct. 16, 1953, not printed (733.5 MSP/10–1653).
2. Ledo Arroyo Torres.
3. Apparent reference to despatch 20, not printed (103 MSA/7–1053).