554. Memorandum From the Special Assistant to the Assistant Secretary of State for Inter-American Affairs (King) to the Assistant Secretary of State for Inter-American Affairs (Rubottom)1
Washington, May 6,
1957.
SUBJECT
- Uruguayan Trade Contacts with Soviet Bloc in 1956
- (1)
- A Uruguayan firm was reported to have sold 300,000 pounds of wool to Communist China in mid-1955. About a year ago, reports were received that Communist China had contracted for the purchase of an additional 600,000 pounds of Uruguayan wool at world market prices.
- (2)
- A treaty of commerce and navigation, a commercial agreement and a payments agreement were concluded with the USSR during 1956. These agreements are not yet effective, since they have not been ratified by the respective governments.
- (3)
- Three economic agreements were signed with the USSR on August 11, 1956 providing for an increase in trade. The payments agreement included provision for a $4 million short-term credit in the case of payments imbalance.
- (4)
- Early in the fall, the Uruguayan Government was reportedly studying but considered not likely to approve a proposed payments agreement with Communist China.
- (5)
- During the year, Uruguay considerably increased its purchases from the bloc, especially cotton. A Uruguayan firm was granted $1.9 million in foreign exchange for imports of textile machinery from East Germany.
- (6)
- A Czechoslovak industrial exposition was held in Montevideo in November. Czechoslovakia reportedly made overtures for a new trade agreement with Uruguay.
- (7)
- Towards the end of the year, 2,700 tons of cotton, valued at $2.25 million, purchased from the USSR, arrived in Montevideo.
- (8)
- A contract was reportedly signed on November 17 in Peiping under which Uruguay was to export more than $3.6 million of wool tops to Communist China.
- (9)
- In an effort to balance its trade with the Soviet bloc, Uruguay established a network of inter-bank agreements with six bloc countries. (Uruguay had previously built up substantial balances in its favor as a result of Soviet bloc failures to provide commodities.) The inter-bank agreement and exchange regulations appeared at the end of the year to have resulted in some reduction in total trade with the bloc.
- Source: Department of State, ARA Files: Lot 59 D 376, Uruguay 1957. Secret.↩